FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a - 16 or 15d - 16 of
the Securities Exchange Act of 1934
For the
month of November
HSBC Holdings plc
42nd
Floor, 8 Canada Square, London E14 5HQ, England
(Indicate
by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F).
Form
20-F X Form 40-F ......
(Indicate
by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information
to the Commission pursuant to Rule 12g3-2(b) under the Securities
Exchange Act of 1934).
Yes.......
No X
(If
"Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b): 82-
..............).
Earnings Release - 3Q16
7
November 2016
HSBC Holdings plc - Earnings Release
HSBC
Holdings plc ('HSBC') will be conducting a trading update
conference call with analysts and investors today to coincide with
the publication of its Earnings Release. The call will take place
at 07.15am GMT. Details of how to participate in the call
and the live audio webcast can be found at
www.hsbc.com/investor-relations.
HSBC
HOLDINGS PLC
1
Earnings Release - 3Q16 (continued)
Table
of contents
|
|
|
|
Highlights
|
|
4
|
Group
Chief Executive's comments
|
|
5
|
Adjusted
performance
|
|
6
|
Financial
performance commentary
|
|
8
|
Cautionary
statement regarding forward-looking statements
|
|
13
|
Summary
consolidated income statement
|
|
14
|
Summary
consolidated balance sheet
|
|
15
|
Capital
|
|
16
|
|
|
|
|
Risk-weighted
assets
|
|
18
|
Leverage
|
|
20
|
Summary
information - global businesses
|
|
21
|
Summary
information - geographical regions
|
|
26
|
Appendix
- selected information
|
|
31
|
Reconciliation of
reported results to adjusted performance
|
|
31
|
Gross
loans and advances by industry sector and by
|
|
|
geographical
region
|
|
40
|
HSBC
HOLDINGS PLC
2
Earnings Release - 3Q16 (continued)
Terms
and abbreviations
|
|
|
2Q16
|
Second
quarter of 2016
|
3Q15/3Q16
|
Third
quarter of 2015/2016
|
9M15/9M16
|
Nine
months to 30 September 2015/2016
|
BoCom
|
Bank of
Communications Co., Limited, one of China's largest
banks
|
CET1
|
Common
equity tier 1
|
CMB
|
Commercial
Banking, a global business
|
CML
|
Consumer
and Mortgage Lending (US)
|
Costs
to achieve
|
Transformation
costs to deliver the cost reduction and productivity outcomes
outlined in the Investor Update in June 2015
|
CRD
IV
|
Capital
Requirements Directive IV
|
CRR
|
Capital
Requirements Regulation
|
DVA
|
Debit
valuation adjustment
|
EBA
|
European
Banking Authority
|
FTEs
|
Full-time
equivalent staff
|
FX
|
Foreign
exchange
|
GB&M
|
Global
Banking and Markets, a global business
|
GPB
|
Global
Private Banking, a global business
|
Group
|
HSBC
Holdings together with its subsidiary undertakings
|
IFRSs
|
International
Financial Reporting Standards
|
Industrial
Bank
|
Industrial
Bank Co. Limited, a national joint-stock bank in mainland China in
which Hang Seng Bank Limited has a shareholding
|
IRB
|
Internal
ratings-based
|
Jaws
|
The
difference between the rate of growth of revenue and the rate of
growth of costs. Positive jaws is where the revenue growth rate
exceeds the cost growth rate. We calculate this on an adjusted
basis
|
JV
|
Joint
venture
|
Legacy
credit
|
A
portfolio of assets comprising Solitaire Funding Limited,
securities investment conduits, asset-backed securities trading
portfolios, credit correlation portfolios and derivative
transactions entered into directly with monoline
insurers
|
LICs
|
Loan
impairment charges and other credit risk provisions
|
MENA
|
Middle
East and North Africa
|
Other
|
Contains
the results of HSBC's holding company and financing operations,
central support and functional costs with associated recoveries,
unallocated investment activities, centrally held investment
companies, certain property transactions, movements in fair value
of own debt and the UK bank levy
|
Own
credit spread
|
Fair
value movements on our long-term debt designated at fair value
resulting from changes in credit spread
|
PBT
|
Profit
before tax
|
PRA
|
Prudential
Regulation Authority (UK)
|
Principal
RBWM
|
RBWM
excluding the effects of the US run-off portfolio
|
Revenue
|
Net
operating income before LICs
|
RBWM
|
Retail
Banking and Wealth Management, a global business
|
RoRWA
|
Pre-tax
return on RWAs is calculated using an average of RWAs at
quarter-ends
|
RWAs
|
Risk-weighted
assets
|
$m/$bn
|
United
States dollar millions/billions
|
VaR
|
Value
at risk
|
Note to
editors
HSBC
Holdings plc
HSBC
Holdings plc, the parent company of HSBC, is headquartered in
London. HSBC serves customers worldwide from approximately 4,000
offices in 71 countries and territories in Europe, Asia, North and
Latin America, and the Middle East and North Africa. With assets of
$2,557bn at 30 September 2016, HSBC is one of the world's largest
banking and financial services organisations.
HSBC
HOLDINGS PLC
3
Earnings Release - 3Q16 (continued)
Highlights
Strategy
execution
|
|
●
|
Further
reduction in RWAs through the completion of Brazil disposal and
other management actions.
|
|
|
●
|
Reduction
in 3Q16 operating expenses on both a reported and adjusted basis to
$8.7bn and $7.2bn respectively.
|
|
|
●
|
Positive
adjusted jaws of 5.6% for 3Q16, and 1.5% for 9M16.
|
|
|
●
|
Increased
market share in a number of key markets and international product
areas, including trade finance in Hong Kong and
Singapore.
|
|
|
●
|
Share
buy-back programme is now 59% complete and expect to finish in late
2016 or early 2017.
|
Financial
performance
|
|
●
|
Adjusted
profit before tax ('PBT') in 3Q16 of $5.6bn, up 7%; reported PBT of
$843m.
|
|
|
●
|
Adjusted
revenue in 3Q16 of $12.8bn, up $0.3bn from increases in
client-facing GB&M (+11%) and Principal RBWM (+9%); reported
revenue in 3Q16 of $9.5bn, down $5.6bn reflecting the impact of
significant items.
|
|
|
●
|
Adjusted
PBT of $16.7bn in 9M16, down 6% or $1.0bn; reported PBT of
$10.6bn.
|
Capital
|
|
●
|
Strong
capital base with CRD IV end point CET1 ratio 13.9%, up from 12.1%
at 30 June 2016, mainly due to a change in regulatory capital
treatment of BoCom.
|
Financial
highlights and key ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine
months ended 30 Sep
|
|
Quarter
ended 30 Sep
|
|
|
2016
|
|
|
2015
|
|
|
Change
|
|
|
2016
|
|
|
2015
|
|
|
Change
|
|
|
|
$m
|
|
|
$m
|
|
|
%
|
|
|
$m
|
|
|
$m
|
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
PBT
|
|
10,557
|
|
|
19,725
|
|
|
(46
|
)
|
|
843
|
|
|
6,097
|
|
|
(86
|
)
|
Adjusted
PBT
|
|
16,681
|
|
|
17,662
|
|
|
(6
|
)
|
|
5,591
|
|
|
5,240
|
|
|
7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
%
|
|
|
%
|
|
|
|
|
%
|
|
|
%
|
|
|
|
Return
on average ordinary shareholders' equity (annualised)
|
|
4.4
|
|
|
10.7
|
|
|
(59
|
)
|
|
(1.4
|
)
|
|
10.9
|
|
|
(113
|
)
|
Adjusted
jaws
|
|
1.5
|
|
|
|
|
|
|
5.6
|
|
|
|
|
|
We use
adjusted performance to understand the underlying trends in the
business. The main differences between reported and adjusted are
foreign currency translation and significant items, including the
operating results for our Brazil business as well as the loss
recognised on disposal.
Capital
and balance sheet
|
|
|
|
|
|
|
|
|
|
|
|
|
At
|
|
|
30
Sep
|
|
|
30
Jun
|
|
|
31
Dec
|
|
|
|
2016
|
|
|
2016
|
|
|
2015
|
|
|
|
%
|
|
|
%
|
|
|
%
|
|
|
|
|
|
|
|
|
Common
equity tier 1 ratio
1
|
|
13.9
|
|
|
12.1
|
|
|
11.9
|
|
Leverage
ratio
|
|
5.4
|
|
|
5.1
|
|
|
5.0
|
|
|
|
|
|
|
|
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
Loans
and advances to customers
|
|
880,851
|
|
|
887,556
|
|
|
924,454
|
|
Customer
accounts
|
|
1,296,444
|
|
|
1,290,958
|
|
|
1,289,586
|
|
Risk-weighted
assets
|
|
904,062
|
|
|
1,082,184
|
|
|
1,102,995
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Since 1 January 2015 the CRD IV transitional
CET1 and end point CET1 capital ratios have been aligned for HSBC
Holdings plc.
The grant of the approval by the Prudential Regulation Authority to
the change in regulatory capital of BoCom is inside information.
This announcement is made by HSBC Holdings plc pursuant to the
Inside Information Provisions (as defined under the Rules Governing
the Listing of Securities on The Stock Exchange of Hong Kong
Limited (the 'Hong Kong Listing Rules')) under Part XIVA of the
Securities and Futures Ordinance (Cap. 571) and Rule 13.09(2)(a) of
the Hong Kong Listing Rules.
HSBC
HOLDINGS PLC
4
Earnings Release - 3Q16 (continued)
Stuart
Gulliver, Group Chief Executive, commented:
Business
performance
Our
third-quarter performance reflected the strength of our network and
the deepening impact of our strategic actions. Reported profits
were down, but adjusted profits were higher than last year's third
quarter in all four global businesses and four out of five regions.
Reported profits included the impact of the disposal of our
operations in Brazil, changes in the fair value of our own debt,
and the costs of implementing our cost-reduction
programmes.
Our
global universal banking model generated higher adjusted revenue
than for the same period last year, and our cost-reduction
programmes continued to reduce our operating expenses. This
produced adjusted positive jaws of 5.6% for the third quarter and
1.5% for the first nine months of the year.
Global
Banking and Markets had strong adjusted revenue growth in the
quarter, with market share gains in Debt Capital Markets globally,
and Rates and Credit in Europe. We also achieved one of our best
ever rankings for global cross-border mergers and acquisitions.
Principal Retail Banking and Wealth Management performed relatively
well due to the impact of stock market movements on our insurance
business in Asia, compared with a weak third quarter of 2015.
Commercial Banking revenue remained stable, as higher balances in
Global Liquidity and Cash Management helped mitigate the impact of
lower revenue from trade finance.
Following
a change in the regulatory treatment of our investment in BoCom,
our common equity tier 1 capital ratio increased to 13.9%. This is
another action forming part of our ongoing capital management of
the Group that reinforces our ability to support the dividend,
to invest in the business and, over the medium term, to contemplate
share buy-backs, as appropriate. It also provides us with a
significant capacity to manage the continuing uncertain
regulatory environment.
We had
completed 59% of our $2.5bn equity buy-back at 31 October. We
expect to finish the programme by the end of 2016 or early in the
first quarter of 2017, depending on market trading volumes in the
fourth quarter.
Strategy
execution
We
generated a further $57bn of RWA savings in the third quarter,
$40bn of which came from the sale of our Brazil business. We are
now more than 80% of the way to achieving our RWA reduction
target.
We have
also now achieved $2.8bn of annualised cost savings and are on
track to achieve our 2017 cost-saving target as well.
Transaction
banking revenue for the first nine months is broadly level with the
same period in 2015 following a good performance from Global
Liquidity and Cash Management. Trade revenue remained under
pressure, but we continued to make market share gains in some of
the world's biggest trade centres, including Hong Kong and
Singapore.
Our US
business disposed of a further $0.9bn of legacy CML assets in the
third quarter. The principal US business reduced adjusted costs by
5% compared with last year's third quarter and achieved adjusted
positive jaws of 6.7% for the first nine months of
2016.
Our
Mexico business remains on track to meet its profitability targets.
Higher lending and deposit balances across retail and wholesale
businesses, and market share gains in personal loans and mortgages
helped to more than double its adjusted profit before tax compared
with last year's third quarter. We also grew adjusted revenue in
Mexico by more than 20% in both Global Trade and Receivables
Finance, and Global Liquidity and Cash Management.
HSBC
HOLDINGS PLC
5
Earnings Release - 3Q16 (continued)
Adjusted
performance
Adjusted
performance is computed by adjusting reported results for the
period-on-period effects of foreign currency translation
differences and significant items, which distort period-on-period
comparisons.
We use
'significant items' collectively to describe the group of
individual adjustments that are excluded from reported results when
arriving at adjusted performance. These items, which are detailed
below, are ones that management and investors would ordinarily
identify and consider separately when assessing performance in
order to understand underlying trends in the business.
These
items include the operating results for our Brazil operations sold
to Banco Bradesco S.A. on 1 July 2016, as well as the loss
recognised on disposal.
We
consider adjusted performance provides useful information for
investors by aligning internal and external reporting, identifying
and quantifying items management believe to be significant, and
providing insight into how management assesses period-on-period
performance.
Foreign
currency translation differences
Foreign
currency translation differences reflect the movements of the US
dollar against most major currencies. We exclude translation
differences when deriving constant currency data because using this
data allows us to assess balance sheet and income statement
performance on a like-for-like basis to better understand the
underlying trends in the business.
Foreign
currency translation differences are computed by retranslating into
US dollars for non-US dollar branches, subsidiaries, joint ventures
and associates:
|
|
●
|
in the
income statement for 9M15, at the average rates of exchange for
9M16;
|
|
|
●
|
in the
income statement for quarterly periods, at the average rates of
exchange for 3Q16; and
|
|
|
●
|
the
closing prior period balance sheets at the prevailing rates of
exchange on 30 September 2016.
|
Significant
items
The
tables in the Appendix starting on page 30 detail the effect of
significant items on each of our geographical segments and global
businesses during 9M16 and 3Q16, and the respective comparatives in
2015.
HSBC
HOLDINGS PLC
6
Earnings Release - 3Q16 (continued)
Reconciliation
of reported results to adjusted performance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine
months ended 30 Sep
|
|
Quarter
ended 30 Sep
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
Revenue
|
|
|
|
|
|
|
|
|
Reported
|
|
38,982
|
|
|
48,028
|
|
|
9,512
|
|
|
15,085
|
|
Currency
translation
|
|
|
|
(2,233
|
)
|
|
|
|
(658
|
)
|
Significant
items
|
|
171
|
|
|
(5,701
|
)
|
|
3,275
|
|
|
(1,899
|
)
|
- DVA
on derivative contracts
|
|
(96
|
)
|
|
(416
|
)
|
|
55
|
|
|
(251
|
)
|
- fair
value movements on non-qualifying hedges
|
|
385
|
|
|
353
|
|
|
(12
|
)
|
|
308
|
|
- loss
on sale of several tranches of real estate secured accounts
in the US
|
|
51
|
|
|
-
|
|
|
119
|
|
|
17
|
|
- gain
on disposal of our membership interest in Visa Europe
|
|
(584
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
- gain
on the partial sale of shareholding in Industrial Bank
|
|
-
|
|
|
(1,372
|
)
|
|
-
|
|
|
-
|
|
- own
credit spread
|
|
144
|
|
|
(1,775
|
)
|
|
1,370
|
|
|
(1,125
|
)
|
-
provisions/(releases) arising from the ongoing review of compliance
with the UK Consumer Credit Act
|
|
(2
|
)
|
|
(2
|
)
|
|
-
|
|
|
10
|
|
- loss
and trading results from disposed-of operations in
Brazil
1
|
|
273
|
|
|
(2,489
|
)
|
|
1,743
|
|
|
(858
|
)
|
|
|
|
|
|
|
|
|
|
Adjusted
|
|
39,153
|
|
|
40,094
|
|
|
12,787
|
|
|
12,528
|
|
|
|
|
|
|
|
|
|
|
LICs
|
|
|
|
|
|
|
|
|
Reported
|
|
(2,932
|
)
|
|
(2,077
|
)
|
|
(566
|
)
|
|
(638
|
)
|
Currency
translation
|
|
|
|
155
|
|
|
|
|
(3
|
)
|
Significant
items
|
|
748
|
|
|
609
|
|
|
-
|
|
|
207
|
|
-
trading results from disposed-of operations in Brazil
1
|
|
748
|
|
|
609
|
|
|
-
|
|
|
207
|
|
|
|
|
|
|
|
|
|
|
Adjusted
|
|
(2,184
|
)
|
|
(1,313
|
)
|
|
(566
|
)
|
|
(434
|
)
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
Reported
|
|
(27,349
|
)
|
|
(28,226
|
)
|
|
(8,721
|
)
|
|
(9,039
|
)
|
Currency
translation
|
|
|
|
1,476
|
|
|
|
|
437
|
|
Significant
items
|
|
5,204
|
|
|
3,716
|
|
|
1,473
|
|
|
1,088
|
|
- costs
to achieve
2
|
|
2,032
|
|
|
165
|
|
|
1,014
|
|
|
165
|
|
- costs
to establish UK ring-fenced bank
3
|
|
147
|
|
|
28
|
|
|
53
|
|
|
28
|
|
-
impairment of GPB - Europe goodwill
|
|
800
|
|
|
-
|
|
|
-
|
|
|
-
|
|
-
regulatory provisions in GPB
|
|
(46
|
)
|
|
154
|
|
|
(50
|
)
|
|
7
|
|
- restructuring
and other related costs
|
|
-
|
|
|
117
|
|
|
-
|
|
|
-
|
|
-
settlements and provisions in connection with legal
matters
|
|
723
|
|
|
1,279
|
|
|
-
|
|
|
135
|
|
- UK
customer redress programmes
|
|
489
|
|
|
204
|
|
|
456
|
|
|
67
|
|
-
trading results from disposed-of operations in Brazil
1
|
|
1,059
|
|
|
1,769
|
|
|
-
|
|
|
686
|
|
|
|
|
|
|
|
|
|
|
Adjusted
|
|
(22,145
|
)
|
|
(23,034
|
)
|
|
(7,248
|
)
|
|
(7,514
|
)
|
|
|
|
|
|
|
|
|
|
Share
of profit in associates and joint ventures
|
|
|
|
|
|
|
|
|
Reported
|
|
1,856
|
|
|
2,000
|
|
|
618
|
|
|
689
|
|
Currency
translation
|
|
|
|
(86
|
)
|
|
|
|
(29
|
)
|
Significant
items
|
|
1
|
|
|
1
|
|
|
-
|
|
|
-
|
|
-
trading results from disposed-of operations in Brazil
1
|
|
1
|
|
|
1
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Adjusted
|
|
1,857
|
|
|
1,915
|
|
|
618
|
|
|
660
|
|
|
|
|
|
|
|
|
|
|
Profit
before tax
|
|
|
|
|
|
|
|
|
Reported
|
|
10,557
|
|
|
19,725
|
|
|
843
|
|
|
6,097
|
|
Currency
translation
|
|
|
|
(688
|
)
|
|
|
|
(253
|
)
|
Significant
items
|
|
6,124
|
|
|
(1,375
|
)
|
|
4,748
|
|
|
(604
|
)
|
-
revenue
|
|
171
|
|
|
(5,701
|
)
|
|
3,275
|
|
|
(1,899
|
)
|
-
LICs
|
|
748
|
|
|
609
|
|
|
-
|
|
|
207
|
|
-
operating expenses
|
|
5,204
|
|
|
3,716
|
|
|
1,473
|
|
|
1,088
|
|
- share
in profit of associates
|
|
1
|
|
|
1
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Adjusted
|
|
16,681
|
|
|
17,662
|
|
|
5,591
|
|
|
5,240
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
Includes loss on disposal, trading results, and foreign
currency translation of operations in Brazil, which were sold on 1
July 2016. Trading results include inter-company transactions with
other HSBC group entities. Trading
results do not include 'DVA
on derivative contracts', 'costs to achieve' and 'restructuring and
other related costs' significant items. These significant items are
included in the respective line items above. Further details
are
included in the Appendix on
pages 30 to 37.
|
|
2
|
Transformation costs to
deliver the cost reduction and productivity outcomes outlined in
our Investor Update in June 2015.
|
|
|
3
|
Since 1 July 2015, costs to establish the UK ring-fenced bank have
been classified as a significant item.
|
HSBC
HOLDINGS PLC
7
Earnings Release - 3Q16 (continued)
Financial
performance commentary
Profit/(loss)
before tax by global business and geographical region
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine
months ended
|
|
Quarter
ended
|
|
|
30
Sep 2016
|
|
|
30
Sep2015
1
|
|
|
30
Sep 2016
|
|
|
30
Jun2016
1
|
|
|
30
Sep2015
1
|
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
By
global business
|
|
|
|
|
|
|
|
|
|
|
Retail
Banking and Wealth Management
|
|
2,648
|
|
|
4,522
|
|
|
266
|
|
|
1,249
|
|
|
1,160
|
|
Commercial
Banking
|
|
5,839
|
|
|
6,749
|
|
|
1,535
|
|
|
2,254
|
|
|
2,226
|
|
Global
Banking and Markets
|
|
5,967
|
|
|
6,895
|
|
|
1,961
|
|
|
1,885
|
|
|
2,141
|
|
Global
Private Banking
|
|
(406
|
)
|
|
261
|
|
|
151
|
|
|
(667
|
)
|
|
81
|
|
Other
|
|
(3,491
|
)
|
|
1,298
|
|
|
(3,070
|
)
|
|
(1,113
|
)
|
|
489
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10,557
|
|
|
19,725
|
|
|
843
|
|
|
3,608
|
|
|
6,097
|
|
|
|
|
|
|
|
|
|
|
|
|
By
geographical region
|
|
|
|
|
|
|
|
|
|
|
Europe
|
|
(32
|
)
|
|
3,801
|
|
|
(1,617
|
)
|
|
(113
|
)
|
|
1,581
|
|
Asia
|
|
10,815
|
|
|
12,948
|
|
|
3,660
|
|
|
3,625
|
|
|
3,548
|
|
Middle
East and North Africa
|
|
1,308
|
|
|
1,232
|
|
|
329
|
|
|
470
|
|
|
346
|
|
North
America
|
|
116
|
|
|
1,169
|
|
|
66
|
|
|
(314
|
)
|
|
479
|
|
Latin
America
|
|
(1,650
|
)
|
|
575
|
|
|
(1,595
|
)
|
|
(60
|
)
|
|
143
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10,557
|
|
|
19,725
|
|
|
843
|
|
|
3,608
|
|
|
6,097
|
|
|
|
1
|
In 3Q16, HSBC Bank plc executed a
management services agreement, transferring its governance
responsibilities over HSBC Bank A.S. (Turkey) to HSBC Bank Middle
East Limited to leverage the strong commercial ties between Turkey
and MENA. Comparative data for Europe and MENA have been
re-presented accordingly.
|
Adjusted
PBT by global business and region is presented to support the
commentary on adjusted performance on the following
pages.
Adjusted
profit/(loss) before tax by global business and geographical
region
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine
months ended 30 Sep
|
|
Quarter
ended 30 Sep
|
|
|
2016
|
|
|
2015
1
|
|
2016
|
|
|
2015
1
|
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
By
global business
|
|
|
|
|
|
|
|
|
Retail
Banking and Wealth Management
|
|
4,908
|
|
|
5,322
|
|
|
1,799
|
|
|
1,510
|
|
Commercial
Banking
|
|
6,363
|
|
|
6,428
|
|
|
2,096
|
|
|
2,080
|
|
Global
Banking and Markets
|
|
6,506
|
|
|
6,988
|
|
|
2,513
|
|
|
1,926
|
|
Global
Private Banking
|
|
351
|
|
|
402
|
|
|
109
|
|
|
86
|
|
Other
|
|
(1,447
|
)
|
|
(1,478
|
)
|
|
(926
|
)
|
|
(362
|
)
|
|
|
|
|
|
|
|
|
|
|
|
16,681
|
|
|
17,662
|
|
|
5,591
|
|
|
5,240
|
|
|
|
|
|
|
|
|
|
|
By
geographical region
|
|
|
|
|
|
|
|
|
Europe
|
|
2,753
|
|
|
3,482
|
|
|
863
|
|
|
819
|
|
Asia
|
|
11,007
|
|
|
11,286
|
|
|
3,804
|
|
|
3,451
|
|
Middle
East and North Africa
|
|
1,370
|
|
|
1,190
|
|
|
379
|
|
|
328
|
|
North
America
|
|
1,067
|
|
|
1,461
|
|
|
383
|
|
|
556
|
|
Latin
America
|
|
484
|
|
|
243
|
|
|
162
|
|
|
86
|
|
|
|
|
|
|
|
|
|
|
|
|
16,681
|
|
|
17,662
|
|
|
5,591
|
|
|
5,240
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
In 3Q16, HSBC Bank plc executed a
management services agreement, transferring its governance
responsibilities over HSBC Bank A.S. (Turkey) to HSBC Bank Middle
East Limited to leverage the strong commercial ties
between
Turkey and
MENA.
Comparative data for Europe
and MENA have been re-presented
accordingly.
The tables on pages 30 to 37 reconcile reported
to adjusted results for each of our geographical regions and global
businesses.
3Q16 compared with 3Q15 - reported results
Movement
in reported profit before tax compared with 3Q15
HSBC
HOLDINGS PLC
8
Earnings Release - 3Q16 (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3Q16
|
|
|
3Q15
|
|
|
Var
|
|
|
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
%
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
9,512
|
|
|
15,085
|
|
|
(5,573
|
)
|
|
(37
|
)
|
LICs
|
|
(566
|
)
|
|
(638
|
)
|
|
72
|
|
|
11
|
|
Operating
expenses
|
|
(8,721
|
)
|
|
(9,039
|
)
|
|
318
|
|
|
4
|
|
Share
of profit from associates and JVs
|
|
618
|
|
|
689
|
|
|
(71
|
)
|
|
(10
|
)
|
|
|
|
|
|
|
|
|
|
|
Profit
before tax
|
|
843
|
|
|
6,097
|
|
|
(5,254
|
)
|
|
(86
|
)
|
In
3Q16, reported PBT of $0.8bn was $5.3bn lower
than in 3Q15. This was mainly due to a net unfavourable
movement of $5.4bn in significant items and the adverse effect of
foreign currency translation movements of $0.3bn, which are
described in more detail on page 7. Movements in significant items
included:
|
|
●
|
adverse
fair value movements of $1.4bn arising from changes in credit
spreads on our own debt designated at fair value, compared with
favourable movements of $1.1bn in 3Q15;
|
|
|
●
|
a
$1.7bn loss recognised on the sale of our Brazil business to Banco
Bradesco S.A., which completed on 1 July 2016 (in 3Q16, the
operating results of our Brazil business were
minimal);
|
|
|
●
|
costs
to achieve of $1.0bn in 3Q16 compared with $0.2bn in 3Q15;
and
|
|
|
●
|
UK
customer redress of $0.5bn in 3Q16 compared with $0.1bn in
3Q15.
|
These
items had the effect of reducing reported PBT in RBWM, CMB and
GB&M, although PBT in GPB rose. Excluding all significant items
and the adverse effects of foreign currency translation differences
between the periods, PBT rose by $0.4bn. The business drivers
affecting our performance are covered in detail in the section
below (see '3Q16 compared with 3Q15 - adjusted results' on this
page).
Reported
revenue of $9.5bn was $5.6bn lower than in 3Q15, notably driven by
the adverse movements in the credit spread on our debt as mentioned
above, and the unfavourable effects of foreign currency
translation of $0.7bn between the periods. In addition, our
reported revenue includes a loss recognised on the sale of our
Brazil business of $1.7bn in 3Q16 compared with operating revenue
of $0.9bn in Brazil in 3Q15. As a result of these items,
reported revenue fell in all of our global businesses.
Reported
LICs of $0.6bn were $0.1bn lower than in 3Q15, notably driven by
the sale of our business in Brazil, where we recorded $0.2bn of
LICs in 3Q15.
Reported
operating expenses of $8.7bn were $0.3bn lower, as the adverse
impact of significant items mentioned above (including the
operating expenses for Brazil of nil in 3Q16 compared with $0.7bn
in 3Q15) was broadly offset by the favourable effects
of foreign currency translation between the periods of $0.4bn.
Operating expenses fell in RBWM, CMB, GB&M and GPB, partly
offset by a rise in Other.
3Q16 compared with 3Q15 - adjusted results
Movement
in adjusted profit before tax compared with 3Q15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3Q16
|
|
|
3Q15
|
|
|
Var
|
|
|
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
%
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
12,787
|
|
|
12,528
|
|
|
259
|
|
|
2
|
|
LICs
|
|
(566
|
)
|
|
(434
|
)
|
|
(132
|
)
|
|
(30
|
)
|
Operating
expenses
|
|
(7,248
|
)
|
|
(7,514
|
)
|
|
266
|
|
|
4
|
|
Share
of profit from associates and JVs
|
|
618
|
|
|
660
|
|
|
(42
|
)
|
|
(6
|
)
|
|
|
|
|
|
|
|
|
|
|
Profit
before tax
|
|
5,591
|
|
|
5,240
|
|
|
351
|
|
|
7
|
|
On an
adjusted basis, PBT of $5.6bn was $0.4bn or 7% higher than 3Q15,
reflecting an increase in revenue and lower costs, partly offset by
an increase in LICs.
Adjusted
revenue of $12.8bn increased by $0.3bn or 2%, mainly in GB&M
(up $0.5bn or 13%) and in RBWM (up $0.3bn or 6%). Revenue in CMB
was broadly unchanged. Key drivers are as follows:
|
|
●
|
In
GB&M adjusted revenue increased by $0.5bn, driven by
client-facing GB&M (up $0.4bn or 11%). This was primarily in
our fixed income businesses - Rates (up $0.2bn) and Credit (up
$0.2bn) - as we gained market share, notably in Europe, and
improved client flows, which more than offset net adverse movements
in Rates of $0.2bn on our own credit spreads in structured
liabilities. Revenue also rose in Principal Investments ($0.1bn)
reflecting higher gains on disposal. By contrast, revenue fell
in Equities (down $0.1bn), resulting from unfavourable
movements on our own credit spreads in structured liabilities in
3Q16 of $0.1bn, compared with favourable movements of $0.1bn in
3Q15. Excluding these movements, revenue in Equities was broadly
unchanged. In legacy credit, revenue increased by $0.1bn following
higher revaluation gains in 3Q16.
|
|
|
●
|
In
RBWM, adjusted revenue rose by $0.3bn. In Principal RBWM (up
$0.4bn), this was driven by an increase in revenue in wealth
management of $0.3bn arising from unfavourable market conditions in
insurance manufacturing in Asia in 3Q15. Current account and
savings revenue also increased, by $0.1bn, as we grew deposit
balances in most regions and benefited from wider spreads,
primarily in Hong Kong, Mexico and Argentina. By contrast, revenue
from personal lending fell by $0.1bn, driven by lower credit card
revenue, notwithstanding growth in lending volumes in Hong Kong,
the UK and Mexico. In our US run-off business, revenue fell by
$0.1bn as we continued to reduce the size of our US CML run-off
portfolio.
|
These
increases were partly offset:
|
|
●
|
In
Other, adjusted revenue decreased $0.7bn, partly reflecting higher
interest expense relating to long-term debt issued by HSBC Holdings
plc. The remainder of the decrease related to a number of
intra-group adjustments, which were largely offset within the
global businesses.
|
Adjusted
LICs of $0.6bn were $0.1bn or 30% higher. In RBWM, LICs
increased by $0.1bn, principally in Mexico reflecting our strategic
focus on growing unsecured lending balances.
HSBC
HOLDINGS PLC
9
Earnings Release - 3Q16 (continued)
Additionally,
in CMB LICs increased from a small number of charges against
specific exposures, notably in Hong Kong, mainland China and Spain,
as well as an increase in charges in the UK.
Adjusted
operating expenses of $7.2bn were $0.3bn or 4% lower, despite
inflationary pressures. This primarily reflected the effect of our
transformational cost saving through organisational design, reduced
FTEs and branch optimisation, as well as lower performance costs
across the business.
9M16
compared with 9M15 - reported results
Movement
in reported profit before tax compared with 9M15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9M16
|
|
|
9M15
|
|
|
Var
|
|
|
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
%
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
38,982
|
|
|
48,028
|
|
|
(9,046
|
)
|
|
(19
|
)
|
LICs
|
|
(2,932
|
)
|
|
(2,077
|
)
|
|
(855
|
)
|
|
(41
|
)
|
Operating
expenses
|
|
(27,349
|
)
|
|
(28,226
|
)
|
|
877
|
|
|
3
|
|
Share
of profit from associates and JVs
|
|
1,856
|
|
|
2,000
|
|
|
(144
|
)
|
|
(7
|
)
|
|
|
|
|
|
|
|
|
|
|
Profit
before tax
|
|
10,557
|
|
|
19,725
|
|
|
(9,168
|
)
|
|
(46
|
)
|
Reported
PBT of $10.6bn in 9M16 was $9.2bn or 46% lower than in 9M15. This
was primarily due to net adverse movements relating to significant
items and the unfavourable effects of foreign currency translation,
which are described in more detail below and on page 7. Excluding
significant items and currency translation, adjusted profit before
tax fell by $1.0bn. The business drivers affecting performance are
covered in detail in the section below (see '9M16 compared with
9M15 - adjusted results').
Movement
in reported revenue compared with 9M15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9M16
|
|
|
9M15
|
|
|
Var
|
|
|
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
%
|
|
|
|
|
|
|
|
|
|
|
RBWM
|
|
15,306
|
|
|
17,912
|
|
|
(2,606
|
)
|
|
(15
|
)
|
CMB
|
|
10,320
|
|
|
11,236
|
|
|
(916
|
)
|
|
(8
|
)
|
GB&M
|
|
12,927
|
|
|
14,786
|
|
|
(1,859
|
)
|
|
(13
|
)
|
GPB
|
|
1,435
|
|
|
1,685
|
|
|
(250
|
)
|
|
(15
|
)
|
Other
1
|
|
(1,006
|
)
|
|
2,409
|
|
|
(3,415
|
)
|
|
(142
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
38,982
|
|
|
48,028
|
|
|
(9,046
|
)
|
|
(19
|
)
|
|
|
1
|
Other
includes Inter-segment.
|
Reported
revenue of $39.0bn in 9M16 was $9.0bn or 19% lower than in
9M15, in part due to a net unfavourable movement in significant
items of $5.9bn, which included:
|
|
●
|
adverse
fair value movements of $0.1bn arising from changes in credit
spreads on our own debt designated at fair value, compared
with favourable movements of $1.8bn in 9M15;
|
|
|
●
|
the
$1.7bn loss recognised on the sale of our Brazil business to Banco
Bradesco S.A., which we completed on 1 July 2016. In addition, the
reported results include the revenue earned in our Brazil business
of $1.5bn in 9M16 compared with $2.5bn in 9M15; and
|
|
|
●
|
the
non-recurrence of a $1.4bn gain on the sale of part of our
shareholding in Industrial Bank in 9M15; partly offset
by
|
|
|
●
|
a
$0.6bn gain on the disposal of our membership interest in Visa
Europe in 2Q16.
|
In
addition, foreign currency translation between the periods had an
adverse effect of $2.2bn. These factors contributed to a fall in
reported revenue in all of our global businesses. Excluding
significant items and the adverse effects of foreign currency
translation differences between the periods, revenue fell by
$0.9bn, which is described in detail below.
Reported
LICs of $2.9bn were $0.9bn higher than in 9M15. The reported
results include LICs incurred in our Brazil business of $0.7bn in
9M16 compared with $0.6bn in 9M15. In addition, LICs rose in our
GB&M, CMB and RBWM businesses. This was partly offset by
the favourable effect of foreign currency translation
differences between the periods of $0.2bn.
Reported
operating expenses of $27.3bn were $0.9bn or 3% lower than in
9M15. This includes favourable effects of currency translation
of $1.5bn between the periods, although these were broadly offset
by an increase in significant items of $1.5bn,
including:
|
|
●
|
costs
to achieve of $2.0bn in 9M16 compared with $0.2bn in 9M15;
and
|
|
|
●
|
an
impairment of $0.8bn relating to goodwill in our GPB business in
Europe; partly offset by
|
|
|
●
|
a
reduction of $0.6bn in settlements and provisions in connection
with legal matters.
|
In
addition, the reported results include the operating expenses
incurred in our Brazil business of $1.1bn in 9M16, compared with
$1.8bn in 9M15.
Excluding
significant items and the adverse effects of foreign currency
translation differences between the periods, operating expenses
fell by $0.9bn. Reductions in RBWM, CMB and GB&M, were partly
offset by a rise in GPB and Other. The reductions partly reflected
the effects of our cost-saving initiatives, which
are described in more detail below.
Reported
income from associates of $1.9bn decreased
by $0.1bn.
On 3
October 2016, the Board announced a third interim dividend of $0.10
per ordinary share.
9M16
compared with 9M15 - adjusted results
Movement
in adjusted profit before tax compared with 9M15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9M16
|
|
|
9M15
|
|
|
Var
|
|
|
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
%
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
39,153
|
|
|
40,094
|
|
|
(941
|
)
|
|
(2
|
)
|
LICs
|
|
(2,184
|
)
|
|
(1,313
|
)
|
|
(871
|
)
|
|
(66
|
)
|
Operating
expenses
|
|
(22,145
|
)
|
|
(23,034
|
)
|
|
889
|
|
|
4
|
|
Share
of profit from associates and JVs
|
|
1,857
|
|
|
1,915
|
|
|
(58
|
)
|
|
(3
|
)
|
|
|
|
|
|
|
|
|
|
|
Profit
before tax
|
|
16,681
|
|
|
17,662
|
|
|
(981
|
)
|
|
(6
|
)
|
On an
adjusted basis, PBT of $16.7bn was $1.0bn or 6% lower than in 9M15.
This was primarily driven by lower revenue and higher LICs, partly
offset by a decrease in operating expenses.
HSBC
HOLDINGS PLC
10
Earnings Release - 3Q16 (continued)
Movement
in adjusted revenue compared with 9M15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9M16
|
|
|
9M15
|
|
|
Var
|
|
|
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
%
|
|
|
|
|
|
|
|
|
|
|
RBWM
|
|
14,961
|
|
|
15,525
|
|
|
(564
|
)
|
|
(4
|
)
|
Principal
RBWM
|
|
14,393
|
|
|
14,668
|
|
|
(275
|
)
|
|
(2
|
)
|
US CML
run-off portfolio
|
|
568
|
|
|
857
|
|
|
(289
|
)
|
|
(34
|
)
|
CMB
|
|
10,343
|
|
|
10,164
|
|
|
179
|
|
|
2
|
|
GB&M
|
|
13,062
|
|
|
13,394
|
|
|
(332
|
)
|
|
(2
|
)
|
Client
facing GB&M and BSM
|
|
13,036
|
|
|
13,303
|
|
|
(267
|
)
|
|
(2
|
)
|
Legacy
credit
|
|
26
|
|
|
91
|
|
|
(65
|
)
|
|
(71
|
)
|
GPB
|
|
1,426
|
|
|
1,599
|
|
|
(173
|
)
|
|
(11
|
)
|
Other
1
|
|
(639
|
)
|
|
(588
|
)
|
|
(51
|
)
|
|
(9
|
)
|
|
|
|
|
|
|
|
|
|
Total
|
|
39,153
|
|
|
40,094
|
|
|
(941
|
)
|
|
(2
|
)
|
|
|
1
|
Other includes
Inter-segment.
|
Adjusted
revenue of $39.2bn was $0.9bn or 2% lower. Notably:
|
|
●
|
In
GB&M, adjusted revenue was $0.3bn or 2% lower than in 9M15.
This was partly due to a decrease in our client-facing business
(down $0.3bn or 3%), mainly in Equities, reflecting lower global
trading volumes. FX revenue also fell, particularly in 1Q16, caused
by market uncertainty leading to a fall in client activity,
although this recovered in 2Q16 and 3Q16. By contrast, revenue
increased in our fixed income businesses - Rates and Credit - as we
gained market share, notably in 3Q16 in Europe, and from improved
client flows. Rates and Equities were also affected by net adverse
movements of $0.1bn and $0.2bn respectively in our own credit
spreads on structured liabilities. In Global Liquidity and Cash
Management, revenue increased as we won new client mandates, grew
average balances and benefited from wider spreads.
|
|
|
●
|
In
RBWM, adjusted revenue decreased by $0.6bn or 4%. In our Principal
RBWM business (down $0.3bn or 2%), decreases were primarily in
Wealth Management, following a strong performance in the first half
of 2015. In investment distribution, revenue fell (down $0.4bn),
mainly in Asia due to lower retail-securities and mutual-funds
turnover. In addition, there was lower revenue in life insurance
manufacturing (down $0.2bn), primarily in Europe, due to adverse
market updates as a result of interest rate movements.
Personal lending revenue also decreased ($0.2bn down) because
of lower credit card revenue in the UK, despite higher overall
lending volumes in Hong Kong, the UK and Mexico. By contrast,
current account and savings revenue increased (up $0.3bn), as we
grew customer deposit balances in most regions, notably Hong Kong
and the UK. We also benefited from wider spreads in Hong Kong,
Mexico and Argentina. In our US run-off portfolio, revenue
decreased by $0.3bn reflecting lower average lending balances and
the impact of portfolio sales.
|
|
|
●
|
In GPB,
adjusted revenue fell by $0.2bn or 11%, driven by lower brokerage
and trading activity in both Europe and Asia. This reflected
adverse market sentiment and unfavourable market conditions,
notably in the first half of the year.
|
These
factors were partly offset:
|
|
●
|
In CMB,
adjusted revenue rose by $0.2bn or 2%. This increase included
growth in Global Liquidity and Cash Management (up $0.1bn), notably
because of increased balances and wider spreads in Hong Kong and
increased balances in the UK. Revenue in Credit and Lending
also increased (up $0.1bn), driven by continued loan growth in the
UK. This was partly offset by lower revenue in Global Trade and
Receivables Finance, mainly in Asia and MENA. This was driven by a
reduction in world trade and resulting reduction in trade lending
in the market. In Asia, we were also affected by Chinese corporates
reverting to mainland China for financing due to lower
interest rates. Notwithstanding these factors, we gained share in
key markets such as Hong Kong and Singapore.
|
Adjusted
LICs of $2.2bn were $0.9bn higher, reflecting increases in our
GB&M, CMB and RBWM businesses:
|
|
●
|
In
GB&M (up $0.4bn), we incurred individually assessed charges,
notably in the oil and gas, and metals and mining sectors,
primarily in the US and Australia in 9M16. These compared with net
releases in 9M15.
|
|
|
●
|
In CMB
(up $0.2bn), our individually assessed charges increased in a small
number of countries, notably in Canada in the energy sector,
and to a lesser extent in Spain in the construction sector, and in
Hong Kong in several sectors. In addition, we increased our
collectively assessed allowances in the UK, compared with a net
release in 9M15.
|
|
|
●
|
In RBWM
(up $0.2bn), LICs rose, notably due to an increase of $0.1bn in
Mexico, reflecting our strategic focus on growing unsecured
lending. In the UK, LICs also grew due to net charges on mortgage
balances, compared with a net release in 9M15.
|
Adjusted
operating expenses of $22.1bn were $0.9bn or 4% lower than in 9M15,
despite inflationary pressures and increases in regulatory
programmes and compliance costs. This primarily reflected
transformational cost savings of $1.3bn achieved year on year, with
run-rate savings of around $2.8bn since the commencement
of our cost-saving programme.
Run-the-bank
costs of $20.2bn were $0.3bn lower compared with 9M15 and
change-the-bank costs of $2.1bn were $0.5bn lower compared with the
same period. This reflected:
|
|
●
|
in
RBWM, the effects of our transformational cost-saving initiatives,
which included our branch optimisation programme;
|
|
|
●
|
in
GB&M, cost reductions driven by reduced performance-related
pay, disciplined cost management, improved process efficiencies
including material FTE reductions and technology delivery
rationalisation; and
|
|
|
●
|
in CMB,
lower costs due to ongoing cost discipline and the impact of our
transformation initiatives, which more than offset
inflation.
|
The
savings above continue to be supported by benefits of
transformational savings in our technology, operations and other
functions.
Included
within the above, our total expenditure on regulatory programmes
and compliance, comprising both run-the-bank and change-the-bank
elements, was $2.2bn, up $0.2bn or 10% from 9M15. This reflected
the ongoing
HSBC
HOLDINGS PLC
11
Earnings Release - 3Q16 (continued)
implementation
of our Global Standards programme to enhance our financial crime
risk controls and capabilities, and meet our external
commitments.
The
number of employees expressed in FTEs at 30 September 2016 was
234,681, a decrease of 1,378 from 31 December 2015. This was
primarily driven by reductions across global businesses, offset by
investment in compliance and costs-to-achieve FTEs.
Adjusted
income from associates of $1.9bn fell by $0.1bn.
The
effective tax rate for 9M16 of 29.3% was higher than the 18.0% rate
in 9M15, principally due to the non-deductible loss on disposal of
our Brazil operations and the UK government's 8% surcharge on UK
banking profits.
Balance
sheet commentary compared with 30 June 2016
Total
reported assets fell by $50.9bn, notably due to the completion of
the sale of our Brazil business to Banco Bradesco S.A. (a $48.3bn
reduction).
Reported
loans and advances to customers decreased by $6.7bn during 3Q16,
and included:
|
|
●
|
adverse
currency translation movements of $9.5bn; partly offset
by
|
|
|
●
|
a
$2.4bn increase in corporate overdraft balances in Europe that did
not meet the criteria for netting, with a corresponding rise in
customer accounts.
|
Excluding
these factors, customer lending was broadly unchanged. Lending rose
mainly in Europe, primarily in the UK due to continued growth
in CMB term lending and in RBWM in mortgages as we increased the
use of broker channels. This was partly offset by our continued
focus on reducing legacy portfolios, primarily transfers to
'Assets held for sale' of US first lien mortgage balances (a $0.9bn
reduction). Balances also fell in CMB in North America from
repayments and maturities, and in MENA in both
CMB
and GB&M as we ran off certain portfolios and focused
on return optimisation.
Reported
customer account balances increased by $5.5bn during 3Q16, and
included:
|
|
●
|
adverse
currency translation movements of $12.5bn; partly offset
by
|
|
|
●
|
a
$2.4bn increase in corporate current account balances, in line with
the increase in corporate overdrafts.
|
Excluding
these movements, customer accounts increased by $15.6bn, mainly in
Asia from RBWM and Global Liquidity and Cash
Management.
Net
interest margin
Net
interest margin for 9M16 fell on a reported basis, compared with
9M15, in part driven by the adverse effects of currency translation
and the sale of our Brazil business to Banco Bradesco S.A.
Excluding currency movements and the sale of Brazil, our net
interest margin fell, as gross yields on customer lending remained
under pressure, principally in the UK on mortgages and term
lending, as well as from the accelerated run-off and sales in the
US CML portfolio. However, yields on customer lending were
unchanged in Asia. By contrast, in Mexico and Argentina, we
benefited from the effects of central bank rate rises across our
asset portfolio.
However,
we had a lower cost of funds, notably from a reduction in our cost
of customer accounts in Asia, reflecting a shift in our portfolio
in HK to lower-cost current accounts and the effects of lower
central bank rates in China, Australia and India.
Notes
|
|
●
|
Income
statement comparisons, unless stated otherwise, are between the
quarter ended 30 September 2015 and the quarter ended 30 September
2016, or between the nine months ended 30 September 2015 and the
corresponding nine months in 2016. Balance sheet comparisons,
unless otherwise stated, are between balances
at 30 September 2016 and the corresponding balances at 30
June 2016.
|
|
|
●
|
The
financial information on which this Earnings Release is based, and
the data set out in the appendix to this statement, are unaudited
and have been prepared in accordance with HSBC's significant
accounting policies as described on pages 347 to 358 of the Annual
Report and Accounts 2015.
|
|
|
●
|
The
Board has adopted a policy of paying quarterly interim dividends on
the ordinary shares. Under this policy, it is intended to have a
pattern of three equal interim dividends with a variable fourth
interim dividend. Dividends are declared in US dollars and, at the
election of the shareholder, paid in cash in one of, or in a
combination of, US dollars, sterling and Hong Kong dollars or,
subject to the Board's determination that a scrip dividend is to be
offered in respect of that dividend, may be satisfied in whole or
in part by the issue of new shares in lieu of a cash
dividend.
|
HSBC
HOLDINGS PLC
12
Earnings Release - 3Q16 (continued)
Cautionary
statement regarding forward-looking statements
This
Earnings Release contains certain forward-looking statements with
respect to HSBC's financial condition, results of operations,
capital position and business.
Statements
that are not historical facts, including statements about HSBC's
beliefs and expectations, are forward-looking statements. Words
such as 'expects', 'anticipates', 'intends', 'plans', 'believes',
'seeks', 'estimates', 'potential' and 'reasonably possible',
variations of these words and similar expressions are intended to
identify forward-looking statements. These statements are based on
current plans, estimates and projections, and therefore undue
reliance should not be placed on them. Forward-looking statements
speak only as of the date they are made. HSBC makes no commitment
to revise or update any forward-looking statements to reflect
events or circumstances occurring or existing after the date of any
forward-looking statements.
Written
and/or oral forward-looking statements may also be made in the
periodic reports to the US Securities and Exchange Commission,
summary financial statements to shareholders, proxy
statements, offering circulars and prospectuses, press releases and
other written materials, and in oral statements made by HSBC's
Directors, officers or employees to third parties, including
financial analysts.
Forward-looking
statements involve inherent risks and uncertainties. Readers are
cautioned that a number of factors could cause actual results to
differ, in some instances materially, from those anticipated or
implied in any forward-looking statement.
These
include, but are not limited to:
|
|
●
|
changes
in general economic conditions in the markets in which we operate,
such as continuing or deepening recessions and fluctuations in
employment beyond those factored into consensus forecasts; changes
in foreign exchange rates and interest rates; volatility in equity
markets; lack of liquidity in wholesale funding markets;
illiquidity and downward price pressure in national real estate
markets; adverse changes in central banks' policies with respect to
the provision of liquidity support to financial markets; heightened
market concerns over sovereign creditworthiness in over-indebted
countries; adverse changes in the funding status of public or
private defined benefit pensions; and consumer perception as to the
continuing availability of credit and price competition in the
market segments we serve;
|
|
|
●
|
changes
in government policy and regulation, including the monetary,
interest rate and other policies of central banks and other
regulatory authorities; initiatives to change the size,
scope of activities and interconnectedness of financial
institutions in connection with the implementation of stricter
regulation of financial institutions in key markets worldwide;
revised capital and liquidity benchmarks which could serve to
deleverage bank balance sheets and lower returns available from the
current business model and portfolio mix; imposition of levies
or taxes designed to change business mix and risk appetite;
the conduct of business of financial institutions in serving their
retail customers, corporate clients and counterparties; the
standards of market conduct; the costs, effects and outcomes
of product regulatory reviews, actions or litigation,
including any additional compliance requirements; expropriation,
nationalisation, confiscation of assets and changes in legislation
relating to foreign ownership; changes in bankruptcy legislation in
the principal markets in which we operate and the consequences
thereof; general changes in government policy that may
significantly influence investor decisions; extraordinary
government actions as a result of current market turmoil; other
unfavourable political or diplomatic developments producing
social instability or legal uncertainty which in turn may affect
demand for our products and services; and the effects of
competition in the markets where we operate including
increased competition from non-bank financial services companies,
including securities firms; and
|
|
|
●
|
factors
specific to HSBC, including our success in adequately identifying
the risks we face, such as the incidence of loan losses or
delinquency, and managing those risks (through account management,
hedging and other techniques). Effective risk management depends
on, among other things, our ability through stress testing and
other techniques to prepare for events that cannot be captured by
the statistical models we use; our success in addressing
operational, legal and regulatory, and litigation challenges,
notably compliance with the Deferred Prosecution Agreement with US
authorities; and the other risks and uncertainties we identify in
'top and emerging risks' on pages 16 and 17 of the Interim Report
2016.
|
For
further information contact:
|
|
|
|
Investor
Relations
|
|
Media
Relations
|
UK -
Richard O'Connor
|
|
UK -
Heidi Ashley
|
Email:
investorrelations@hsbc.com
|
|
Tel:
+44 (0) 20 7992 2045
|
Hong
Kong - Hugh Pye
|
|
Hong
Kong - Gareth Hewett
|
Tel:
+852 2822 4908
|
|
Tel:
+852 2822 4929
|
HSBC
HOLDINGS PLC
13
Earnings Release - 3Q16 (continued)
Summary
consolidated income statement
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine
months ended
|
|
Quarter
ended
|
|
|
30
Sep 2016
|
|
|
30
Sep 2015
|
|
|
30
Sep 2016
|
|
|
30
Jun 2016
|
|
|
30
Sep 2015
|
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest income
|
|
22,945
|
|
|
24,472
|
|
|
7,185
|
|
|
7,847
|
|
|
8,028
|
|
Net fee
income
|
|
9,848
|
|
|
11,234
|
|
|
3,262
|
|
|
3,389
|
|
|
3,509
|
|
Net
trading income
|
|
7,555
|
|
|
7,315
|
|
|
2,231
|
|
|
2,488
|
|
|
2,742
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes
in fair value of long-term debt issued and related
derivatives
|
|
(1,402
|
)
|
|
1,947
|
|
|
(1,672
|
)
|
|
(420
|
)
|
|
623
|
|
Net
income/(expense) from other financial instruments designated at
fair value
|
|
1,150
|
|
|
(165
|
)
|
|
859
|
|
|
286
|
|
|
(1,507
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net
income/(expense) from financial instruments designated at fair
value
|
|
(252
|
)
|
|
1,782
|
|
|
(813
|
)
|
|
(134
|
)
|
|
(884
|
)
|
Gains
less losses from financial investments
|
|
1,271
|
|
|
2,048
|
|
|
306
|
|
|
773
|
|
|
174
|
|
Dividend
income
|
|
78
|
|
|
96
|
|
|
14
|
|
|
36
|
|
|
28
|
|
Net
insurance premium income
|
|
7,891
|
|
|
8,100
|
|
|
2,535
|
|
|
2,441
|
|
|
2,493
|
|
Other
operating income/(expense)
|
|
(847
|
)
|
|
1,107
|
|
|
(1,491
|
)
|
|
472
|
|
|
271
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
operating income
|
|
48,489
|
|
|
56,154
|
|
|
13,229
|
|
|
17,312
|
|
|
16,361
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
insurance claims and benefits paid and movement in liabilities to
policyholders
|
|
(9,507
|
)
|
|
(8,126
|
)
|
|
(3,717
|
)
|
|
(2,818
|
)
|
|
(1,276
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net
operating income before loan impairment charges and othercredit
risk provisions
|
|
38,982
|
|
|
48,028
|
|
|
9,512
|
|
|
14,494
|
|
|
15,085
|
|
Loan
impairment charges and other credit risk provisions
|
|
(2,932
|
)
|
|
(2,077
|
)
|
|
(566
|
)
|
|
(1,205
|
)
|
|
(638
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net
operating income
|
|
36,050
|
|
|
45,951
|
|
|
8,946
|
|
|
13,289
|
|
|
14,447
|
|
Total
operating expenses
|
|
(27,349
|
)
|
|
(28,226
|
)
|
|
(8,721
|
)
|
|
(10,364
|
)
|
|
(9,039
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
8,701
|
|
|
17,725
|
|
|
225
|
|
|
2,925
|
|
|
5,408
|
|
Share
of profit in associates and joint ventures
|
|
1,856
|
|
|
2,000
|
|
|
618
|
|
|
683
|
|
|
689
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
before tax
|
|
10,557
|
|
|
19,725
|
|
|
843
|
|
|
3,608
|
|
|
6,097
|
|
Tax
expense
|
|
(3,094
|
)
|
|
(3,541
|
)
|
|
(803
|
)
|
|
(720
|
)
|
|
(634
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Profit
after tax
|
|
7,463
|
|
|
16,184
|
|
|
40
|
|
|
2,888
|
|
|
5,463
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit/(loss)
attributable to shareholders of the parent company
|
|
6,708
|
|
|
14,847
|
|
|
(204
|
)
|
|
2,611
|
|
|
5,229
|
|
Profit
attributable to non-controlling interests
|
|
755
|
|
|
1,337
|
|
|
244
|
|
|
277
|
|
|
234
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
|
|
$
|
|
|
$
|
|
|
$
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings per ordinary share
|
|
0.29
|
|
|
0.73
|
|
|
(0.03)
|
|
|
0.13
|
|
|
0.25
|
|
Diluted
earnings per ordinary share
|
|
0.29
|
|
|
0.72
|
|
|
(0.03)
|
|
|
0.12
|
|
|
0.25
|
|
Dividend per
ordinary share (in respect of the period)
|
|
0.30
|
|
|
0.30
|
|
|
0.10
|
|
|
0.10
|
|
|
0.10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
%
|
|
|
%
|
|
|
%
|
|
|
%
|
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Return
on average ordinary shareholders' equity (annualised)
|
|
4.4
|
|
|
10.7
|
|
|
(1.4
|
)
|
|
5.7
|
|
|
10.9
|
|
Pre-tax
return on average risk-weighted assets (annualised)
|
|
1.3
|
|
|
2.2
|
|
|
0.3
|
|
|
1.3
|
|
|
2.1
|
|
Cost
efficiency ratio
|
|
70.2
|
|
|
58.8
|
|
|
91.7
|
|
|
71.5
|
|
|
59.9
|
|
HSBC
HOLDINGS PLC
14
Earnings Release - 3Q16 (continued)
Summary
consolidated balance sheet
|
|
|
|
|
|
|
|
|
|
|
|
|
At
|
|
|
30 Sep
2016
|
|
|
30 Jun
2016
|
|
|
31
Dec 2015
|
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
Assets
|
|
|
|
|
|
|
Cash
and balances at central banks
|
|
120,270
|
|
|
128,272
|
|
|
98,934
|
|
Trading
assets
|
|
293,253
|
|
|
280,295
|
|
|
224,837
|
|
Financial
assets designated at fair value
|
|
25,285
|
|
|
23,901
|
|
|
23,852
|
|
Derivatives
|
|
334,411
|
|
|
369,942
|
|
|
288,476
|
|
Loans
and advances to banks
|
|
95,579
|
|
|
92,199
|
|
|
90,401
|
|
Loans
and advances to customers
|
|
880,851
|
|
|
887,556
|
|
|
924,454
|
|
Reverse
repurchase agreements - non-trading
|
|
192,061
|
|
|
187,826
|
|
|
146,255
|
|
Financial
investments
|
|
455,681
|
|
|
441,399
|
|
|
428,955
|
|
Assets
held for sale
|
|
2,036
|
|
|
50,305
|
|
|
43,900
|
|
Other
assets
|
|
157,834
|
|
|
146,454
|
|
|
139,592
|
|
|
|
|
|
|
|
|
Total
assets
|
|
2,557,261
|
|
|
2,608,149
|
|
|
2,409,656
|
|
|
|
|
|
|
|
|
Liabilities
and Equity
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
Deposits
by banks
|
|
71,525
|
|
|
69,900
|
|
|
54,371
|
|
Customer
accounts
|
|
1,296,444
|
|
|
1,290,958
|
|
|
1,289,586
|
|
Repurchase
agreements - non-trading
|
|
108,500
|
|
|
98,342
|
|
|
80,400
|
|
Trading
liabilities
|
|
208,507
|
|
|
188,698
|
|
|
141,614
|
|
Financial
liabilities designated at fair value
|
|
88,003
|
|
|
78,882
|
|
|
66,408
|
|
Derivatives
|
|
329,098
|
|
|
368,414
|
|
|
281,071
|
|
Debt
securities in issue
|
|
71,650
|
|
|
87,673
|
|
|
88,949
|
|
Liabilities
under insurance contracts
|
|
76,131
|
|
|
73,416
|
|
|
69,938
|
|
Liabilities
of disposal groups held for sale
|
|
853
|
|
|
43,705
|
|
|
36,840
|
|
Other
liabilities
|
|
111,238
|
|
|
109,864
|
|
|
102,961
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
2,361,949
|
|
|
2,409,852
|
|
|
2,212,138
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
Total
shareholders' equity
|
|
188,108
|
|
|
191,257
|
|
|
188,460
|
|
Non-controlling
interests
|
|
7,204
|
|
|
7,040
|
|
|
9,058
|
|
|
|
|
|
|
|
|
Total
equity
|
|
195,312
|
|
|
198,297
|
|
|
197,518
|
|
|
|
|
|
|
|
|
Total
liabilities and equity
|
|
2,557,261
|
|
|
2,608,149
|
|
|
2,409,656
|
|
|
|
|
|
|
|
|
Ratio
of customer advances to customer accounts
|
|
67.9
|
%
|
|
68.8
|
%
|
|
71.7
|
%
|
HSBC
HOLDINGS PLC
15
Earnings Release - 3Q16 (continued)
Capital
Transitional
own funds disclosure
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At
|
|
|
|
30
Sep
|
|
|
30
Jun
|
|
|
31
Dec
|
|
Ref*
|
|
|
|
2016
|
|
|
2016
|
|
|
2015
|
|
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
|
|
|
|
|
|
|
6
|
|
Common
equity tier 1 capital before regulatory adjustments
|
|
163,320
|
|
|
166,118
|
|
|
164,183
|
|
28
|
|
Total
regulatory adjustments to common equity tier 1
|
|
(37,483
|
)
|
|
(35,448
|
)
|
|
(33,320
|
)
|
|
|
|
|
|
|
|
|
29
|
|
Common
equity tier 1 capital
1
|
|
125,837
|
|
|
130,670
|
|
|
130,863
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
36
|
|
Additional
tier 1 capital before regulatory adjustments
|
|
21,786
|
|
|
21,784
|
|
|
22,621
|
|
43
|
|
Total
regulatory adjustments to additional tier 1 capital
|
|
(158
|
)
|
|
(142
|
)
|
|
(181
|
)
|
|
|
|
|
|
|
|
|
44
|
|
Additional
tier 1 capital
|
|
21,628
|
|
|
21,642
|
|
|
22,440
|
|
|
|
|
|
|
|
|
|
45
|
|
Tier 1
capital
|
|
147,465
|
|
|
152,312
|
|
|
153,303
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
51
|
|
Tier 2
capital before regulatory adjustments
|
|
34,588
|
|
|
34,849
|
|
|
36,852
|
|
57
|
|
Total
regulatory adjustments to tier 2 capital
|
|
(433
|
)
|
|
(368
|
)
|
|
(322
|
)
|
|
|
|
|
|
|
|
|
58
|
|
Tier 2
capital
|
|
34,155
|
|
|
34,481
|
|
|
36,530
|
|
|
|
|
|
|
|
|
|
59
|
|
Total
capital
|
|
181,620
|
|
|
186,793
|
|
|
189,833
|
|
|
|
|
|
|
|
|
|
60
|
|
Total
risk-weighted assets
|
|
904,062
|
|
|
1,082,184
|
|
|
1,102,995
|
|
|
|
|
|
|
|
|
|
|
Capital
ratios and buffers
|
|
%
|
|
|
%
|
|
|
%
|
|
61
|
|
Common
equity tier 1 ratio
|
|
13.9
|
|
|
12.1
|
|
|
11.9
|
|
62
|
|
Tier 1
ratio
|
|
16.3
|
|
|
14.1
|
|
|
13.9
|
|
63
|
|
Total
capital ratio
|
|
20.1
|
|
|
17.3
|
|
|
17.2
|
|
|
|
*
|
The
references identify the lines prescribed in the EBA
template.
|
|
|
1
|
Since 1
January 2015 the CRD IV transitional CET1 and end point CET1
capital ratios have been aligned for HSBC Holdings plc.
Transitional provisions continue to apply for additional tier 1 and
tier 2 capital.
|
Capital
Our
CET1 capital ratio increased to 13.9%.
Following
a recent clarification of policy by the PRA, at 30 September
2016 the regulatory treatment of our investment in BoCom changed
from proportional consolidation of RWAs to a deduction from capital
(subject to regulatory thresholds). The change in treatment
resulted in net reported RWAs related to the BoCom investment
decreasing by $120.9bn, with a threshold deduction from
capital of $5.6bn. The net impact on our reported CET1 ratio at 30
September 2016 was an increase of 104 basis points. The
revised regulatory treatment is more consistent with our financial
reporting treatment of BoCom, aligning with the equity method of
accounting, and better reflects our relationship with BoCom,
including the nature of our obligations and financial
commitments.
CET1
capital decreased in the quarter by $4.8bn, due to:
|
|
●
|
$5.6bn
from the change in treatment of BoCom;
|
|
|
●
|
the
share buy-back of $2.5bn; and
|
|
|
●
|
unfavourable
foreign currency translation differences of $1.3bn.
|
These
decreases were partly offset:
|
|
●
|
by
$2.4bn from the sale of our activities in Brazil; and
|
|
|
●
|
$1.3bn
of capital generation through profits, from ongoing activities, net
of dividends and scrip.
|
Our
2016 Pillar 2A requirement as per the PRA's Individual Capital
Guidance based on a point in time assessment is 2.9% of RWAs, of
which 1.6% is met by CET1.
RWAs
RWAs
decreased in the quarter by $178.1bn, of which $6.2bn was due to
foreign currency translation differences. The decrease was
primarily from the change of regulatory treatment of our
investment in BoCom. RWA initiatives reduced RWAs by $57.2bn,
partly offset by book size movements increasing RWAs by
$5.2bn.
The
following comments describe RWA movements in the quarter, excluding
foreign currency translation differences.
RWA
initiatives
The
main drivers of these reductions were:
|
|
●
|
$39.5bn
from the sale of our activities in Brazil;
|
|
|
●
|
$2.4bn
through the continued reduction in GB&M Legacy Credit and
US run-off portfolios; and
|
|
|
●
|
$15.3bn
as a result of reduced exposures, refined calculations and process
improvements.
|
Book
size
Book
size movements increased RWAs by $5.2bn, principally
from:
|
|
●
|
increased
corporate lending in GB&M and CMB in Europe, increasing RWAs by
$4.3bn, partly offset by a decline in trade related products and
corporate lending in North America and MENA reducing RWAs by
$2.8bn;
|
|
|
●
|
increased
central bank balances and deposits and government debt securities
in Asia, MENA and North America by $3.4bn; and
|
HSBC
HOLDINGS PLC
16
Earnings Release - 3Q16 (continued)
|
|
●
|
financial
market movements and client-driven activity, which increased market
risk and counterparty credit risk by $1.1bn.
|
Methodology
and policy
The
reduction in RWAs relating to methodology and policy changes was
mainly driven by the change of regulatory treatment of our
investment in BoCom.
HSBC
HOLDINGS PLC
17
Earnings Release - 3Q16 (continued)
Risk-weighted
assets
RWA
movement by geographical region by key driver
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit
risk, counterparty credit risk and operational risk
|
|
|
|
|
|
|
Europe
2
|
|
|
Asia
|
|
|
MENA
2
|
|
|
NorthAmerica
|
|
|
LatinAmerica
|
|
|
Market
risk
|
|
|
Total
RWAs
|
|
|
|
$bn
|
|
|
$bn
|
|
|
$bn
|
|
|
$bn
|
|
|
$bn
|
|
|
$bn
|
|
|
$bn
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RWAs at
1 Jul 2016
|
|
290.6
|
|
|
437.6
|
|
|
67.4
|
|
|
167.4
|
|
|
77.4
|
|
|
41.8
|
|
|
1,082.2
|
|
RWA
movements
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RWA
initiatives
|
|
(1.9
|
)
|
|
(5.0
|
)
|
|
(1.0
|
)
|
|
(7.5
|
)
|
|
(39.6
|
)
|
|
(2.2
|
)
|
|
(57.2
|
)
|
Foreign
exchange movement
|
|
(4.2
|
)
|
|
(0.3
|
)
|
|
(0.2
|
)
|
|
(0.2
|
)
|
|
(1.3
|
)
|
|
-
|
|
|
(6.2
|
)
|
Acquisitions
and disposals
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Book
size
1
|
|
4.8
|
|
|
1.5
|
|
|
(1.1
|
)
|
|
(3.8
|
)
|
|
0.5
|
|
|
3.3
|
|
|
5.2
|
|
Book
quality
|
|
(1.0
|
)
|
|
-
|
|
|
0.4
|
|
|
0.3
|
|
|
0.3
|
|
|
-
|
|
|
-
|
|
Model
updates
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
-
portfolios moving onto IRB approach
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
-
new/updated models
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Methodology and
policy
|
|
0.5
|
|
|
(119.7
|
)
|
|
(0.1
|
)
|
|
(0.1
|
)
|
|
(0.5
|
)
|
|
-
|
|
|
(119.9
|
)
|
-
internal updates
|
|
1.6
|
|
|
0.5
|
|
|
(0.1
|
)
|
|
(0.1
|
)
|
|
(0.2
|
)
|
|
-
|
|
|
1.7
|
|
-
external updates - regulatory
|
|
(1.1
|
)
|
|
(120.2
|
)
|
|
-
|
|
|
-
|
|
|
(0.3
|
)
|
|
-
|
|
|
(121.6
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
RWA movement
|
|
(1.8
|
)
|
|
(123.5
|
)
|
|
(2.0
|
)
|
|
(11.3
|
)
|
|
(40.6
|
)
|
|
1.1
|
|
|
(178.1
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RWAs at
30 Sep 2016
|
|
288.8
|
|
|
314.1
|
|
|
65.4
|
|
|
156.1
|
|
|
36.8
|
|
|
42.9
|
|
|
904.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
Book size now includes market risk movements
previously categorised as movements in risk
levels.
|
|
2
|
In 3Q16, HSBC Bank plc executed a management services agreement,
transferring its governance responsibilities over HSBC Bank A.S.
(Turkey) to HSBC Bank Middle East Limited to leverage the strong
commercial ties between Turkey and MENA. Comparative data for
Europe and MENA have been re-presented
accordingly.
|
RWA
movement by global businesses by key driver
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit
risk, counterparty credit risk and operational risk
|
|
|
|
|
|
|
PrincipalRBWM
|
|
|
RBWM
(US
run-offportfolio)
|
|
|
TotalRBWM
|
|
|
CMB
|
|
|
GB&M
|
|
|
GPB
|
|
|
Other
|
|
|
Market
risk
|
|
|
Total
RWAs
|
|
|
|
$bn
|
|
|
$bn
|
|
|
$bn
|
|
|
$bn
|
|
|
$bn
|
|
|
$bn
|
|
|
$bn
|
|
|
$bn
|
|
|
$bn
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RWAs at
1 Jul 2016
|
|
148.9
|
|
|
27.2
|
|
|
176.1
|
|
|
414.8
|
|
|
395.6
|
|
|
18.5
|
|
|
35.4
|
|
|
41.8
|
|
|
1,082.2
|
|
RWA
movements
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RWA
initiatives
|
|
(8.2
|
)
|
|
(3.6
|
)
|
|
(11.8
|
)
|
|
(21.4
|
)
|
|
(21.5
|
)
|
|
-
|
|
|
(0.3
|
)
|
|
(2.2
|
)
|
|
(57.2
|
)
|
Foreign
exchange movement
|
|
(1.1
|
)
|
|
-
|
|
|
(1.1
|
)
|
|
(3.1
|
)
|
|
(1.8
|
)
|
|
(0.1
|
)
|
|
(0.1
|
)
|
|
-
|
|
|
(6.2
|
)
|
Acquisitions
and disposals
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Book
size
1
|
|
1.1
|
|
|
-
|
|
|
1.1
|
|
|
2.3
|
|
|
(1.7
|
)
|
|
(0.3
|
)
|
|
0.5
|
|
|
3.3
|
|
|
5.2
|
|
Book
quality
|
|
(0.5
|
)
|
|
-
|
|
|
(0.5
|
)
|
|
0.7
|
|
|
(0.2
|
)
|
|
(0.1
|
)
|
|
0.1
|
|
|
-
|
|
|
-
|
|
Model
updates
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
-
portfolios moving onto IRB approach
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
-
new/updated models
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Methodology and
policy
|
|
(17.9
|
)
|
|
-
|
|
|
(17.9
|
)
|
|
(87.9
|
)
|
|
(29.3
|
)
|
|
-
|
|
|
15.2
|
|
|
-
|
|
|
(119.9
|
)
|
-
internal updates
|
|
1.5
|
|
|
-
|
|
|
1.5
|
|
|
2.3
|
|
|
(0.4
|
)
|
|
-
|
|
|
(1.7
|
)
|
|
-
|
|
|
1.7
|
|
-
external updates - regulatory
|
|
(19.4
|
)
|
|
-
|
|
|
(19.4
|
)
|
|
(90.2
|
)
|
|
(28.9
|
)
|
|
-
|
|
|
16.9
|
|
|
-
|
|
|
(121.6
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
RWA movement
|
|
(26.6
|
)
|
|
(3.6
|
)
|
|
(30.2
|
)
|
|
(109.4
|
)
|
|
(54.5
|
)
|
|
(0.5
|
)
|
|
15.4
|
|
|
1.1
|
|
|
(178.1
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RWAs at
30 Sep 2016
|
|
122.3
|
|
|
23.6
|
|
|
145.9
|
|
|
305.4
|
|
|
341.1
|
|
|
18.0
|
|
|
50.8
|
|
|
42.9
|
|
|
904.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Book size now includes
market risk movements previously categorised as movements in risk
levels.
HSBC
HOLDINGS PLC
18
Earnings Release - 3Q16 (continued)
RWAs by
risk type
|
|
|
|
|
|
|
|
|
|
RWAs
at
|
|
|
Capital
required
1
at
|
|
|
|
30
Sep 2016
|
|
|
30
Sep 2016
|
|
|
|
$bn
|
|
|
$bn
|
|
|
|
|
|
|
Credit
risk
|
|
686.8
|
|
|
55.0
|
|
Standardised
approach
|
|
175.0
|
|
|
14.0
|
|
IRB
foundation approach
|
|
27.1
|
|
|
2.2
|
|
IRB
advanced approach
|
|
484.7
|
|
|
38.8
|
|
Counterparty credit
risk
|
|
70.0
|
|
|
5.5
|
|
Standardised
approach
|
|
18.3
|
|
|
1.4
|
|
- CCR
standardised approach
|
|
2.3
|
|
|
0.2
|
|
-
Credit valuation adjustment
|
|
14.3
|
|
|
1.1
|
|
-
Central counterparty
|
|
1.7
|
|
|
0.1
|
|
Advanced
approach
|
|
51.7
|
|
|
4.1
|
|
- CCR
IRB approach
|
|
46.6
|
|
|
3.7
|
|
-
Credit valuation adjustment
|
|
5.1
|
|
|
0.4
|
|
Market
risk
|
|
42.9
|
|
|
3.5
|
|
Internal
model based
|
|
37.8
|
|
|
3.0
|
|
-
VaR
|
|
7.5
|
|
|
0.6
|
|
-
Stressed VaR
|
|
10.0
|
|
|
0.8
|
|
-
Incremental risk charge
|
|
11.8
|
|
|
0.9
|
|
- Other
VaR and stressed VaR
|
|
8.5
|
|
|
0.7
|
|
Standardised
approach
|
|
5.1
|
|
|
0.5
|
|
-
Interest rate positions risk
|
|
1.9
|
|
|
0.2
|
|
-
Foreign exchange position risk
|
|
0.4
|
|
|
-
|
|
-
Equity position risk
|
|
0.7
|
|
|
0.1
|
|
-
Commodity position risk
|
|
-
|
|
|
-
|
|
-
Securitisation
|
|
2.1
|
|
|
0.2
|
|
-
Options
|
|
-
|
|
|
-
|
|
Operational
risk
|
|
104.4
|
|
|
8.4
|
|
At 30
Sep 2016
|
|
904.1
|
|
|
72.4
|
|
|
|
1
|
'Capital required' represents the
Pillar 1 capital charge at 8% of RWAs.
|
HSBC
HOLDINGS PLC
19
Earnings Release - 3Q16 (continued)
RWAs by
geographical region
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe
2
|
|
|
Asia
|
|
|
MENA
2
|
|
|
NorthAmerica
|
|
|
LatinAmerica
|
|
|
Total
|
|
|
|
$bn
|
|
|
$bn
|
|
|
$bn
|
|
|
$bn
|
|
|
$bn
|
|
|
$bn
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IRB
approach
|
|
176.8
|
|
|
197.7
|
|
|
21.7
|
|
|
110.4
|
|
|
5.2
|
|
|
511.8
|
|
- IRB
advanced approach
|
|
159.4
|
|
|
197.7
|
|
|
12.0
|
|
|
110.4
|
|
|
5.2
|
|
|
484.7
|
|
- IRB
foundation approach
|
|
17.4
|
|
|
-
|
|
|
9.7
|
|
|
-
|
|
|
-
|
|
|
27.1
|
|
Standardised
approach
|
|
40.7
|
|
|
64.5
|
|
|
34.5
|
|
|
17.9
|
|
|
17.4
|
|
|
175.0
|
|
Credit
risk
|
|
217.5
|
|
|
262.2
|
|
|
56.2
|
|
|
128.3
|
|
|
22.6
|
|
|
686.8
|
|
Counterparty
credit risk
|
|
38.1
|
|
|
15.3
|
|
|
1.5
|
|
|
13.8
|
|
|
1.3
|
|
|
70.0
|
|
Market
risk
1
|
|
29.8
|
|
|
24.4
|
|
|
3.2
|
|
|
8.0
|
|
|
0.8
|
|
|
42.9
|
|
Operational
risk
|
|
33.2
|
|
|
36.6
|
|
|
7.7
|
|
|
14.0
|
|
|
12.9
|
|
|
104.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 30
Sep 2016
|
|
318.6
|
|
|
338.5
|
|
|
68.6
|
|
|
164.1
|
|
|
37.6
|
|
|
904.1
|
|
|
|
1
|
RWAs
are non-additive across geographical regions due to market risk
diversification effects within the Group.
|
|
|
2
|
In
3Q16, HSBC Bank plc executed a management services agreement,
transferring its governance responsibilities over HSBC Bank A.S.
(Turkey) to HSBC Bank Middle East Limited to leverage the strong
commercial ties between Turkey and MENA. Comparative data for
Europe and MENA have been re-presented accordingly.
|
RWAs by
global business
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal
RBWM
|
|
|
RBWM
(US
run-off
portfolio)
|
|
|
Total
RBWM
|
|
|
CMB
|
|
|
GB&M
|
|
|
GPB
|
|
|
Other
|
|
|
Total
|
|
|
|
$bn
|
|
|
$bn
|
|
|
$bn
|
|
|
$bn
|
|
|
$bn
|
|
|
$bn
|
|
|
$bn
|
|
|
$bn
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IRB
approach
|
|
54.8
|
|
|
17.4
|
|
|
72.2
|
|
|
219.5
|
|
|
201.8
|
|
|
7.3
|
|
|
11.0
|
|
|
511.8
|
|
- IRB
advanced approach
|
|
54.8
|
|
|
17.4
|
|
|
72.2
|
|
|
200.4
|
|
|
194.7
|
|
|
7.3
|
|
|
10.1
|
|
|
484.7
|
|
- IRB
foundation approach
|
|
-
|
|
|
-
|
|
|
-
|
|
|
19.1
|
|
|
7.1
|
|
|
-
|
|
|
0.9
|
|
|
27.1
|
|
Standardised
approach
|
|
33.5
|
|
|
3.8
|
|
|
37.3
|
|
|
58.1
|
|
|
31.4
|
|
|
7.0
|
|
|
41.2
|
|
|
175.0
|
|
Credit
risk
|
|
88.3
|
|
|
21.2
|
|
|
109.5
|
|
|
277.6
|
|
|
233.2
|
|
|
14.3
|
|
|
52.2
|
|
|
686.8
|
|
Counterparty
credit risk
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
69.5
|
|
|
0.2
|
|
|
0.3
|
|
|
70.0
|
|
Market
risk
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
42.6
|
|
|
-
|
|
|
0.3
|
|
|
42.9
|
|
Operational
risk
|
|
34.0
|
|
|
2.4
|
|
|
36.4
|
|
|
27.8
|
|
|
38.4
|
|
|
3.5
|
|
|
(1.7
|
)
|
|
104.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 30
Sep 2016
|
|
122.3
|
|
|
23.6
|
|
|
145.9
|
|
|
305.4
|
|
|
383.7
|
|
|
18.0
|
|
|
51.1
|
|
|
904.1
|
|
Leverage
Leverage
ratio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At
|
|
|
|
30
Sep
|
|
|
30
Jun
|
|
|
31
Dec
|
|
|
|
|
2016
|
|
|
2016
|
|
|
2015
|
|
Ref*
|
|
|
$bn
|
|
|
$bn
|
|
|
$bn
|
|
|
|
|
|
|
|
|
|
21
|
Total
leverage ratio exposure
|
|
2,529
|
|
|
2,788
|
|
|
2,794
|
|
20
|
Tier 1
capital (end point)
|
|
137
|
|
|
142
|
|
|
140
|
|
|
|
|
|
|
|
|
|
22
|
Leverage
ratio
|
|
5.4
|
%
|
|
5.1
|
%
|
|
5.0
|
%
|
|
|
|
|
|
|
|
|
EU-23
|
Choice
on transitional arrangements for the definition of the capital
measure
|
|
Fully
phased in
|
|
|
Fully
phased in
|
|
|
Fully
phased in
|
|
|
Total
leverage ratio exposure - quarterly average
|
|
2,672
|
|
|
2,819
|
|
|
2,869
|
|
|
Leverage
ratio - quarterly average
|
|
5.3
|
%
|
|
5.1
|
%
|
|
5.0
|
%
|
|
|
*
|
The references identify the lines prescribed in the EBA
template.
|
Our
leverage ratio calculated on the CRR basis was 5.4% at
30 September 2016, up from 5.1% at 30 June 2016. This was
mainly due to a reduction in the exposure measure resulting from
the change in regulatory treatment of our investment in
BoCom.
The
Group's UK leverage ratio on a modified basis, excluding qualifying
central bank balances, was 5.6%. This modification to the leverage
ratio exposure measure was made following recommendations by the
Bank of England's Financial Policy Committee.
The
Financial Policy Committee has stated that it intends to
re-calibrate the leverage ratio in 2017 to take account of this
modification. Any uplift in HSBC's UK leverage ratio should be
considered in this context.
At 30
September 2016, our UK minimum leverage ratio requirement of 3% was
supplemented by an additional leverage ratio buffer of 0.2%
that translates to a value of $6bn, and a countercyclical leverage
ratio buffer which results in no capital impact. We comfortably
exceeded these leverage requirements.
HSBC
HOLDINGS PLC
20
Earnings Release - 3Q16 (continued)
Summary
information - global businesses
Retail
Banking and Wealth Management
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine
months ended
|
|
Quarter
ended
|
|
|
30
Sep 2016
|
|
|
30
Sep 2015
|
|
|
30
Sep 2016
|
|
|
30
Jun 2016
|
|
|
30
Sep 2015
|
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
Net
operating income before loan impairment chargesand other credit
risk provisions
|
|
15,306
|
|
|
17,912
|
|
|
4,189
|
|
|
5,957
|
|
|
5,470
|
|
Loan
impairment charges and other credit risk provisions
|
|
(1,483
|
)
|
|
(1,396
|
)
|
|
(363
|
)
|
|
(539
|
)
|
|
(462
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net
operating income
|
|
13,823
|
|
|
16,516
|
|
|
3,826
|
|
|
5,418
|
|
|
5,008
|
|
Total
operating expenses
|
|
(11,463
|
)
|
|
(12,308
|
)
|
|
(3,655
|
)
|
|
(4,276
|
)
|
|
(3,954
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
2,360
|
|
|
4,208
|
|
|
171
|
|
|
1,142
|
|
|
1,054
|
|
Share
of profit in associates and joint ventures
|
|
288
|
|
|
314
|
|
|
95
|
|
|
107
|
|
|
106
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
before tax
|
|
2,648
|
|
|
4,522
|
|
|
266
|
|
|
1,249
|
|
|
1,160
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
before tax related to:
|
|
|
|
|
|
|
|
|
|
|
-
Principal RBWM
|
|
3,338
|
|
|
4,698
|
|
|
380
|
|
|
1,708
|
|
|
1,181
|
|
- US
run-off portfolio
|
|
(690
|
)
|
|
(176
|
)
|
|
(114
|
)
|
|
(459
|
)
|
|
(21
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
%
|
|
|
%
|
|
|
%
|
|
|
%
|
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost
efficiency ratio
|
|
74.9
|
|
|
68.7
|
|
|
87.3
|
|
|
71.8
|
|
|
72.3
|
|
Reported
pre-tax RoRWA (annualised)
|
|
2.0
|
|
|
3.0
|
|
|
0.7
|
|
|
2.8
|
|
|
2.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
profit before tax - Principal RBWM
1
|
|
4,761
|
|
|
4,954
|
|
|
1,747
|
|
|
1,502
|
|
|
1,356
|
|
|
|
1
|
Excludes the US run-off portfolio. Adjusted profit before tax of
the US run-off portfolio was $147m for 9M16 (9M15: $368m) and $52m
for 3Q16 (2Q16: $71m; 3Q15: $154m).
|
Principal
RBWM: management view of adjusted revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine
months ended
|
|
Quarter
ended
|
|
|
30
Sep 2016
|
|
|
30
Sep 2015
|
|
|
30
Sep 2016
|
|
|
30
Jun 2016
|
|
|
30
Sep 2015
|
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
accounts, savings and deposits
|
|
4,035
|
|
|
3,737
|
|
|
1,307
|
|
|
1,346
|
|
|
1,231
|
|
Wealth
products
|
|
3,937
|
|
|
4,505
|
|
|
1,500
|
|
|
1,288
|
|
|
1,191
|
|
Investment
distribution
1
|
|
2,251
|
|
|
2,622
|
|
|
804
|
|
|
730
|
|
|
784
|
|
Life
insurance manufacturing
|
|
968
|
|
|
1,136
|
|
|
442
|
|
|
331
|
|
|
168
|
|
Asset
Management
|
|
718
|
|
|
747
|
|
|
254
|
|
|
227
|
|
|
239
|
|
|
|
|
|
|
|
|
|
|
|
|
Personal
lending
|
|
5,814
|
|
|
5,986
|
|
|
1,883
|
|
|
1,878
|
|
|
1,956
|
|
Mortgages
|
|
1,980
|
|
|
2,033
|
|
|
636
|
|
|
641
|
|
|
670
|
|
Credit
cards
|
|
2,379
|
|
|
2,536
|
|
|
773
|
|
|
761
|
|
|
821
|
|
Other
personal lending
2
|
|
1,455
|
|
|
1,417
|
|
|
474
|
|
|
476
|
|
|
465
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
3
|
|
607
|
|
|
440
|
|
|
266
|
|
|
164
|
|
|
182
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
14,393
|
|
|
14,668
|
|
|
4,956
|
|
|
4,676
|
|
|
4,560
|
|
|
|
1
|
'Investment distribution' includes Investments, comprising mutual
funds (HSBC manufactured and third-party), structured products and
securities trading, and Wealth insurance distribution, comprising
HSBC manufactured and third-party life, pension and investment
insurance products.
|
|
|
2
|
'Other personal lending' includes personal non-residential
closed-end loans and personal overdrafts.
|
|
|
3
|
'Other' mainly includes the distribution and manufacturing (where
applicable) of retail and credit protection
insurance.
|
HSBC
HOLDINGS PLC
21
Earnings Release - 3Q16 (continued)
Commercial
Banking
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine
months ended
|
|
Quarter
ended
|
|
|
30
Sep 2016
|
|
|
30
Sep 2015
|
|
|
30
Sep 2016
|
|
|
30
Jun 2016
|
|
|
30
Sep 2015
|
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
Net
operating income before loan impairment chargesand other credit
risk provisions
|
|
10,320
|
|
|
11,236
|
|
|
2,811
|
|
|
3,886
|
|
|
3,702
|
|
Loan
impairment charges and other credit risk provisions
|
|
(1,077
|
)
|
|
(757
|
)
|
|
(244
|
)
|
|
(443
|
)
|
|
(246
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net
operating income
|
|
9,243
|
|
|
10,479
|
|
|
2,567
|
|
|
3,443
|
|
|
3,456
|
|
Total
operating expenses
|
|
(4,558
|
)
|
|
(4,997
|
)
|
|
(1,415
|
)
|
|
(1,619
|
)
|
|
(1,676
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
4,685
|
|
|
5,482
|
|
|
1,152
|
|
|
1,824
|
|
|
1,780
|
|
Share
of profit in associates and joint ventures
|
|
1,154
|
|
|
1,267
|
|
|
383
|
|
|
430
|
|
|
446
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
before tax
|
|
5,839
|
|
|
6,749
|
|
|
1,535
|
|
|
2,254
|
|
|
2,226
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
%
|
|
|
%
|
|
|
%
|
|
|
%
|
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost
efficiency ratio
|
|
44.2
|
|
|
44.5
|
|
|
50.3
|
|
|
41.7
|
|
|
45.3
|
|
Reported
pre-tax RoRWA (annualised)
|
|
2.0
|
|
|
2.1
|
|
|
1.7
|
|
|
2.2
|
|
|
2.0
|
|
Management
view of adjusted revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine
months ended
|
|
Quarter
ended
|
|
|
30
Sep 2016
|
|
|
30
Sep 2015
|
|
|
30
Sep 2016
|
|
|
30
Jun 2016
|
|
|
30
Sep 2015
|
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
|
|
|
|
|
|
|
|
|
|
Global
Trade and Receivables Finance
|
|
1,477
|
|
|
1,634
|
|
|
479
|
|
|
484
|
|
|
548
|
|
Credit
and Lending
|
|
4,044
|
|
|
3,991
|
|
|
1,326
|
|
|
1,319
|
|
|
1,355
|
|
Global
Liquidity and Cash Management
|
|
3,368
|
|
|
3,233
|
|
|
1,101
|
|
|
1,103
|
|
|
1,080
|
|
Markets
products, Insurance and Investments and other
|
|
1,454
|
|
|
1,306
|
|
|
446
|
|
|
495
|
|
|
358
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
10,343
|
|
|
10,164
|
|
|
3,352
|
|
|
3,401
|
|
|
3,341
|
|
HSBC
HOLDINGS PLC
22
Earnings Release - 3Q16 (continued)
Global
Banking and Markets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine
months ended
|
|
Quarter
ended
|
|
|
30
Sep 2016
|
|
|
30
Sep 2015
|
|
|
30
Sep 2016
|
|
|
30
Jun 2016
|
|
|
30
Sep 2015
|
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
Net
operating income before loan impairment chargesand other credit
risk provisions
|
|
12,927
|
|
|
14,786
|
|
|
4,014
|
|
|
4,447
|
|
|
4,525
|
|
Loan
impairment (charges)/recoveries and other credit risk
provisions
|
|
(385
|
)
|
|
90
|
|
|
40
|
|
|
(232
|
)
|
|
79
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
operating income
|
|
12,542
|
|
|
14,876
|
|
|
4,054
|
|
|
4,215
|
|
|
4,604
|
|
Total
operating expenses
|
|
(6,976
|
)
|
|
(8,385
|
)
|
|
(2,227
|
)
|
|
(2,471
|
)
|
|
(2,595
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
5,566
|
|
|
6,491
|
|
|
1,827
|
|
|
1,744
|
|
|
2,009
|
|
Share
of profit in associates and joint ventures
|
|
401
|
|
|
404
|
|
|
134
|
|
|
141
|
|
|
132
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
before tax
|
|
5,967
|
|
|
6,895
|
|
|
1,961
|
|
|
1,885
|
|
|
2,141
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
%
|
|
|
%
|
|
|
%
|
|
|
%
|
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost
efficiency ratio
|
|
54.0
|
|
|
56.7
|
|
|
55.5
|
|
|
55.6
|
|
|
57.3
|
|
Reported
pre-tax RoRWA (annualised)
|
|
1.9
|
|
|
1.9
|
|
|
1.9
|
|
|
1.7
|
|
|
1.8
|
|
Management
view of adjusted revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine
months ended
|
|
Quarter
ended
|
|
|
30
Sep 2016
|
|
|
30
Sep 2015
|
|
|
30
Sep 2016
|
|
|
30
Jun 2016
|
|
|
30
Sep 2015
|
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
|
|
|
|
|
|
|
|
|
|
Markets
|
|
5,190
|
|
|
5,457
|
|
|
1,736
|
|
|
1,760
|
|
|
1,391
|
|
Legacy
Credit
|
|
26
|
|
|
91
|
|
|
125
|
|
|
(55
|
)
|
|
(5
|
)
|
Credit
|
|
728
|
|
|
547
|
|
|
225
|
|
|
332
|
|
|
71
|
|
Rates
|
|
1,595
|
|
|
1,280
|
|
|
541
|
|
|
535
|
|
|
359
|
|
Foreign
Exchange
|
|
2,085
|
|
|
2,143
|
|
|
658
|
|
|
690
|
|
|
633
|
|
Equities
|
|
756
|
|
|
1,396
|
|
|
187
|
|
|
258
|
|
|
333
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Financing
|
|
2,658
|
|
|
2,688
|
|
|
933
|
|
|
854
|
|
|
924
|
|
Global
Liquidity and Cash Management
|
|
1,357
|
|
|
1,246
|
|
|
457
|
|
|
440
|
|
|
409
|
|
Securities
Services
|
|
1,191
|
|
|
1,233
|
|
|
412
|
|
|
393
|
|
|
406
|
|
Global
Trade and Receivables Finance
|
|
489
|
|
|
487
|
|
|
163
|
|
|
161
|
|
|
164
|
|
Balance
Sheet Management
|
|
2,217
|
|
|
2,176
|
|
|
726
|
|
|
756
|
|
|
693
|
|
Principal
Investments
|
|
168
|
|
|
172
|
|
|
173
|
|
|
(4
|
)
|
|
46
|
|
Other
1
|
|
(208
|
)
|
|
(65
|
)
|
|
(95
|
)
|
|
(79
|
)
|
|
(53
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
13,062
|
|
|
13,394
|
|
|
4,505
|
|
|
4,281
|
|
|
3,980
|
|
|
|
1
|
'Other' in GB&M includes net interest earned on free capital
held in the global business not assigned to products and gains
resulting from business disposals. Within the management view of
total operating income, notional tax credits are allocated to the
businesses to reflect the economic benefit generated by certain
activities which is not reflected within operating income, such as
notional credits on income earned from tax-exempt investments where
the economic benefit of the activity is reflected in tax expense.
In order to reflect the total operating income on an IFRS basis,
the offset to these tax credits is included within
'Other'.
|
HSBC
HOLDINGS PLC
23
Earnings Release - 3Q16 (continued)
Global
Private Banking
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine
months ended
|
|
Quarter
ended
|
|
|
30
Sep 2016
|
|
|
30
Sep 2015
|
|
|
30
Sep 2016
|
|
|
30
Jun 2016
|
|
|
30
Sep 2015
|
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
Net
operating income before loan impairment charges and other credit
risk provisions
|
|
1,435
|
|
|
1,685
|
|
|
462
|
|
|
486
|
|
|
508
|
|
Loan
impairment (charges)/recoveries and other credit risk
provisions
|
|
10
|
|
|
(9
|
)
|
|
(1
|
)
|
|
11
|
|
|
(4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net
operating income
|
|
1,445
|
|
|
1,676
|
|
|
461
|
|
|
497
|
|
|
504
|
|
Total
operating expenses
|
|
(1,858
|
)
|
|
(1,427
|
)
|
|
(313
|
)
|
|
(1,166
|
)
|
|
(426
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
(413
|
)
|
|
249
|
|
|
148
|
|
|
(669
|
)
|
|
78
|
|
Share
of profit in associates and joint ventures
|
|
7
|
|
|
12
|
|
|
3
|
|
|
2
|
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit/(loss)
before tax
|
|
(406
|
)
|
|
261
|
|
|
151
|
|
|
(667
|
)
|
|
81
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
%
|
|
|
%
|
|
|
%
|
|
|
%
|
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost
efficiency ratio
|
|
129.5
|
|
|
84.7
|
|
|
67.7
|
|
|
239.9
|
|
|
83.9
|
|
Reported pre-tax
RoRWA (annualised)
|
|
(2.9
|
)
|
|
1.7
|
|
|
3.3
|
|
|
(14.2
|
)
|
|
1.5
|
|
Client
assets
1
by
geography
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
ended
|
|
|
30
Sep 2016
|
|
|
30
Jun 2016
|
|
|
31
Mar 2016
|
|
|
31
Dec 2015
|
|
|
30
Sep 2015
|
|
|
|
$bn
|
|
|
$bn
|
|
|
$bn
|
|
|
$bn
|
|
|
$bn
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe
|
|
158
|
|
|
159
|
|
|
163
|
|
|
168
|
|
|
170
|
|
Asia
|
|
112
|
|
|
108
|
|
|
108
|
|
|
112
|
|
|
106
|
|
North
America
|
|
42
|
|
|
41
|
|
|
62
|
|
|
61
|
|
|
62
|
|
Latin
America
|
|
3
|
|
|
9
|
|
|
8
|
|
|
8
|
|
|
8
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
315
|
|
|
317
|
|
|
341
|
|
|
349
|
|
|
346
|
|
|
|
1
|
'Client assets' are translated at the rates of exchange applicable
for their respective period-ends, with the effects of currency
translation reported separately. The main components of client
assets are funds under management, which are not reported on the
Group's balance sheet and customer deposits, which are reported on
the Group's balance sheet.
|
Client
assets
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
ended
|
|
|
30
Sep 2016
|
|
|
30
Jun 2016
|
|
|
31
Mar 2016
|
|
|
31
Dec 2015
|
|
|
30
Sep 2015
|
|
|
|
$bn
|
|
|
$bn
|
|
|
$bn
|
|
|
$bn
|
|
|
$bn
|
|
|
|
|
|
|
|
|
|
|
|
|
Opening
balance
|
|
317
|
|
|
341
|
|
|
349
|
|
|
346
|
|
|
370
|
|
Net new
money
|
|
(4
|
)
|
|
(1
|
)
|
|
(5
|
)
|
|
(1
|
)
|
|
3
|
|
Of
which: areas targeted for growth
|
|
-
|
|
|
1
|
|
|
4
|
|
|
2
|
|
|
6
|
|
Value
change
|
|
6
|
|
|
-
|
|
|
(6
|
)
|
|
6
|
|
|
(14
|
)
|
Exchange
and other
|
|
(4
|
)
|
|
(23
|
)
|
|
3
|
|
|
(2
|
)
|
|
(13
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Closing
balance
|
|
315
|
|
|
317
|
|
|
341
|
|
|
349
|
|
|
346
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
'Client assets' are translated at the
rates of exchange applicable for their respective period-ends, with
the effects of currency translation reported separately. The main
components of client assets are funds under management, which are
not reported on the Group's balance sheet and customer deposits,
which are reported on the Group's balance
sheet.
HSBC
HOLDINGS PLC
24
Earnings Release - 3Q16 (continued)
Other
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine
months ended
|
|
Quarter
ended
|
|
|
30
Sep 2016
|
|
|
30
Sep 2015
|
|
|
30
Sep 2016
|
|
|
30
Jun 2016
|
|
|
30
Sep 2015
|
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
Net
operating income before loan impairment charges and other credit
risk provisions
|
|
3,524
|
|
|
7,227
|
|
|
(504
|
)
|
|
1,370
|
|
|
2,540
|
|
- of
which: effect of changes in own credit spread on the fair value of
long-term debt issued
|
|
(144
|
)
|
|
1,775
|
|
|
(1,370
|
)
|
|
75
|
|
|
1,125
|
|
Loan
impairment recoveries/(charges) and other credit risk
provisions
|
|
3
|
|
|
(5
|
)
|
|
2
|
|
|
(2
|
)
|
|
(5
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net
operating income
|
|
3,527
|
|
|
7,222
|
|
|
(502
|
)
|
|
1,368
|
|
|
2,535
|
|
Total
operating expenses
|
|
(7,024
|
)
|
|
(5,927
|
)
|
|
(2,571
|
)
|
|
(2,484
|
)
|
|
(2,048
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit/(loss)
|
|
(3,497
|
)
|
|
1,295
|
|
|
(3,073
|
)
|
|
(1,116
|
)
|
|
487
|
|
Share
of profit in associates and joint ventures
|
|
6
|
|
|
3
|
|
|
3
|
|
|
3
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit/(loss)
before tax
|
|
(3,491
|
)
|
|
1,298
|
|
|
(3,070
|
)
|
|
(1,113
|
)
|
|
489
|
|
|
|
1
|
The main items reported under 'Other' are the results of HSBC's
holding company and financing operations, which include net
interest earned on free capital held centrally, operating costs
incurred by the head office operations in providing stewardship and
central management services to HSBC, along with the costs incurred
by the Group Service Centres and Shared Service Organisations and
associated recoveries. The results also include unallocated
investment activities, centrally held investment companies and
certain property transactions. In addition, 'Other' also includes
part of the movement in the fair value of long-term debt designated
at fair value (the remainder of the Group's movement on own debt is
included in GB&M).
|
HSBC
HOLDINGS PLC
25
Earnings Release - 3Q16 (continued)
Summary
information - geographical regions
Europe
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine
months ended
|
|
Quarter
ended
|
|
|
30
Sep 2016
|
|
|
30
Sep2015
1
|
|
|
30
Sep 2016
|
|
|
30
Jun2016
1
|
|
|
30
Sep2015
1
|
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
Net
operating income before loan impairment charges and other credit
risk provisions
|
|
13,881
|
|
|
17,014
|
|
|
3,023
|
|
|
5,222
|
|
|
5,874
|
|
Loan
impairment charges and other credit risk provisions
|
|
(386
|
)
|
|
(213
|
)
|
|
(44
|
)
|
|
(192
|
)
|
|
(22
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net
operating income
|
|
13,495
|
|
|
16,801
|
|
|
2,979
|
|
|
5,030
|
|
|
5,852
|
|
Total
operating expenses
|
|
(13,524
|
)
|
|
(13,006
|
)
|
|
(4,594
|
)
|
|
(5,141
|
)
|
|
(4,275
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit/(loss)
|
|
(29
|
)
|
|
3,795
|
|
|
(1,615
|
)
|
|
(111
|
)
|
|
1,577
|
|
Share
of profit in associates and joint ventures
|
|
(3
|
)
|
|
6
|
|
|
(2
|
)
|
|
(2
|
)
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit/(loss)
before tax
|
|
(32
|
)
|
|
3,801
|
|
|
(1,617
|
)
|
|
(113
|
)
|
|
1,581
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
%
|
|
|
%
|
|
|
%
|
|
|
%
|
|
|
%
|
|
Cost
efficiency ratio
|
|
97.4
|
|
|
76.4
|
|
|
152.0
|
|
|
98.4
|
|
|
72.8
|
|
Reported
pre-tax RoRWA (annualised)
1
|
|
-
|
|
|
1.4
|
|
|
(2.0
|
)
|
|
(0.1
|
)
|
|
1.8
|
|
Profit/(loss)
before tax by global business
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine
months ended
|
|
Quarter
ended
|
|
|
30
Sep 2016
|
|
|
30
Sep2015
1
|
|
|
30
Sep 2016
|
|
|
30
Jun2016
1
|
|
|
30
Sep2015
1
|
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
Banking and Wealth Management
|
|
719
|
|
|
1,298
|
|
|
(189
|
)
|
|
656
|
|
|
363
|
|
Commercial
Banking
|
|
1,878
|
|
|
1,929
|
|
|
553
|
|
|
760
|
|
|
653
|
|
Global
Banking and Markets
|
|
1,291
|
|
|
1,090
|
|
|
755
|
|
|
212
|
|
|
234
|
|
Global
Private Banking
|
|
(725
|
)
|
|
(15
|
)
|
|
20
|
|
|
(764
|
)
|
|
9
|
|
Other
|
|
(3,195
|
)
|
|
(501
|
)
|
|
(2,756
|
)
|
|
(977
|
)
|
|
322
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit/(loss)
before tax
|
|
(32
|
)
|
|
3,801
|
|
|
(1,617
|
)
|
|
(113
|
)
|
|
1,581
|
|
|
|
1
|
In 3Q16, HSBC Bank plc executed a management services agreement,
transferring its governance responsibilities over HSBC Bank A.S.
(Turkey) to HSBC Bank Middle East Limited to leverage the strong
commercial ties between Turkey and MENA. Comparative data for
Europe and MENA have been re-presented
accordingly.
|
Reported
and adjusted UK profit/(loss) before tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine
months ended
|
|
Quarter
ended
|
|
|
30
Sep 2016
|
|
|
30
Sep 2015
|
|
|
30
Sep 2016
|
|
|
30
Jun 2016
|
|
|
30
Sep 2015
|
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
profit/(loss) before tax
|
|
223
|
|
|
2,781
|
|
|
(1,754
|
)
|
|
390
|
|
|
1,356
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
profit before tax
|
|
2,018
|
|
|
2,368
|
|
|
559
|
|
|
643
|
|
|
614
|
|
HSBC
HOLDINGS PLC
26
Earnings Release - 3Q16 (continued)
Asia
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine
months ended
|
|
Quarter
ended
|
|
|
30
Sep 2016
|
|
|
30
Sep 2015
|
|
|
30
Sep 2016
|
|
|
30
Jun 2016
|
|
|
30
Sep 2015
|
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
Net
operating income before loan impairment charges and other credit
risk provisions
|
|
17,751
|
|
|
19,843
|
|
|
5,999
|
|
|
5,919
|
|
|
5,778
|
|
Loan
impairment charges and other credit risk provisions
|
|
(552
|
)
|
|
(365
|
)
|
|
(208
|
)
|
|
(154
|
)
|
|
(119
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net
operating income
|
|
17,199
|
|
|
19,478
|
|
|
5,791
|
|
|
5,765
|
|
|
5,659
|
|
Total
operating expenses
|
|
(7,887
|
)
|
|
(8,126
|
)
|
|
(2,642
|
)
|
|
(2,702
|
)
|
|
(2,669
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
9,312
|
|
|
11,352
|
|
|
3,149
|
|
|
3,063
|
|
|
2,990
|
|
Share
of profit in associates and joint ventures
|
|
1,503
|
|
|
1,596
|
|
|
511
|
|
|
562
|
|
|
558
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
before tax
|
|
10,815
|
|
|
12,948
|
|
|
3,660
|
|
|
3,625
|
|
|
3,548
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
%
|
|
|
%
|
|
|
%
|
|
|
%
|
|
|
%
|
|
Cost
efficiency ratio
|
|
44.4
|
|
|
41.0
|
|
|
44.0
|
|
|
45.6
|
|
|
46.2
|
|
Reported
pre-tax RoRWA (annualised)
|
|
3.4
|
|
|
3.5
|
|
|
3.6
|
|
|
3.2
|
|
|
2.9
|
|
Profit/(loss)
before tax by global business
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine
months ended
|
|
Quarter
ended
|
|
|
30
Sep 2016
|
|
|
30
Sep 2015
|
|
|
30
Sep 2016
|
|
|
30
Jun 2016
|
|
|
30
Sep 2015
|
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
Banking and Wealth Management
|
|
3,382
|
|
|
3,432
|
|
|
1,301
|
|
|
1,060
|
|
|
901
|
|
Commercial
Banking
|
|
3,509
|
|
|
3,623
|
|
|
1,153
|
|
|
1,213
|
|
|
1,219
|
|
Global
Banking and Markets
|
|
3,648
|
|
|
3,962
|
|
|
1,136
|
|
|
1,271
|
|
|
1,279
|
|
Global
Private Banking
|
|
237
|
|
|
209
|
|
|
114
|
|
|
57
|
|
|
53
|
|
Other
|
|
39
|
|
|
1,722
|
|
|
(44
|
)
|
|
24
|
|
|
96
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
before tax
|
|
10,815
|
|
|
12,948
|
|
|
3,660
|
|
|
3,625
|
|
|
3,548
|
|
Reported
and adjusted Hong Kong profit before tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine
months ended
|
|
Quarter
ended
|
|
|
30
Sep 2016
|
|
|
30
Sep 2015
|
|
|
30
Sep 2016
|
|
|
30
Jun 2016
|
|
|
30
Sep 2015
|
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
profit before tax
|
|
6,366
|
|
|
8,050
|
|
|
2,196
|
|
|
2,081
|
|
|
1,817
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
profit before tax
|
|
6,440
|
|
|
6,651
|
|
|
2,230
|
|
|
2,138
|
|
|
1,802
|
|
HSBC
HOLDINGS PLC
27
Earnings Release - 3Q16 (continued)
Middle
East and North Africa
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine
months ended
|
|
Quarter
ended
|
|
|
30
Sep 2016
|
|
|
30
Sep2015
1
|
|
|
30
Sep 2016
|
|
|
30
Jun2016
1
|
|
|
30
Sep2015
1
|
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
Net
operating income before loan impairment charges and other credit
risk provisions
|
|
2,337
|
|
|
2,405
|
|
|
725
|
|
|
775
|
|
|
779
|
|
Loan
impairment charges and other credit risk provisions
|
|
(184
|
)
|
|
(272
|
)
|
|
(88
|
)
|
|
(49
|
)
|
|
(144
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net
operating income
|
|
2,153
|
|
|
2,133
|
|
|
637
|
|
|
726
|
|
|
635
|
|
Total
operating expenses
|
|
(1,206
|
)
|
|
(1,297
|
)
|
|
(419
|
)
|
|
(381
|
)
|
|
(418
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
947
|
|
|
836
|
|
|
218
|
|
|
345
|
|
|
217
|
|
Share
of profit in associates and joint ventures
|
|
361
|
|
|
396
|
|
|
111
|
|
|
125
|
|
|
129
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
before tax
|
|
1,308
|
|
|
1,232
|
|
|
329
|
|
|
470
|
|
|
346
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
%
|
|
|
%
|
|
|
%
|
|
|
%
|
|
|
%
|
|
Cost
efficiency ratio
|
|
51.6
|
|
|
53.9
|
|
|
57.8
|
|
|
49.2
|
|
|
53.7
|
|
Reported
pre-tax RoRWA (annualised)
1
|
|
2.5
|
|
|
2.2
|
|
|
1.9
|
|
|
2.7
|
|
|
1.9
|
|
Profit/(loss)
before tax by global business
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine
months ended
|
|
Quarter
ended
|
|
|
30
Sep 2016
|
|
|
30
Sep2015
1
|
|
|
30
Sep 2016
|
|
|
30
Jun2016
1
|
|
|
30
Sep2015
1
|
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
Banking and Wealth Management
|
|
109
|
|
|
92
|
|
|
3
|
|
|
50
|
|
|
(8
|
)
|
Commercial
Banking
|
|
442
|
|
|
404
|
|
|
119
|
|
|
162
|
|
|
120
|
|
Global
Banking and Markets
|
|
824
|
|
|
751
|
|
|
260
|
|
|
263
|
|
|
232
|
|
Global
Private Banking
|
|
7
|
|
|
14
|
|
|
1
|
|
|
3
|
|
|
5
|
|
Other
|
|
(74
|
)
|
|
(29
|
)
|
|
(54
|
)
|
|
(8
|
)
|
|
(3
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Profit
before tax
|
|
1,308
|
|
|
1,232
|
|
|
329
|
|
|
470
|
|
|
346
|
|
|
|
1
|
In 3Q16, HSBC Bank plc executed a management services agreement,
transferring its governance responsibilities over HSBC Bank A.S.
(Turkey) to HSBC Bank Middle East Limited to leverage the strong
commercial ties between Turkey and MENA. Comparative data for
Europe and MENA have been re-presented
accordingly.
|
HSBC
HOLDINGS PLC
28
Earnings Release - 3Q16 (continued)
North
America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine
months ended
|
|
Quarter
ended
|
|
|
30
Sep 2016
|
|
|
30
Sep 2015
|
|
|
30
Sep 2016
|
|
|
30
Jun 2016
|
|
|
30
Sep 2015
|
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
Net
operating income before loan impairment charges and other credit
risk provisions
|
|
5,532
|
|
|
6,065
|
|
|
1,580
|
|
|
1,958
|
|
|
1,939
|
|
Loan
impairment charges and other credit risk provisions
|
|
(705
|
)
|
|
(217
|
)
|
|
(88
|
)
|
|
(289
|
)
|
|
(64
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net
operating income
|
|
4,827
|
|
|
5,848
|
|
|
1,492
|
|
|
1,669
|
|
|
1,875
|
|
Total
operating expenses
|
|
(4,707
|
)
|
|
(4,682
|
)
|
|
(1,424
|
)
|
|
(1,981
|
)
|
|
(1,395
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit/(loss)
|
|
120
|
|
|
1,166
|
|
|
68
|
|
|
(312
|
)
|
|
480
|
|
Share
of profit/(loss) in associates and joint ventures
|
|
(4
|
)
|
|
3
|
|
|
(2
|
)
|
|
(2
|
)
|
|
(1
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Profit/(loss)
before tax
|
|
116
|
|
|
1,169
|
|
|
66
|
|
|
(314
|
)
|
|
479
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
%
|
|
|
%
|
|
|
%
|
|
|
%
|
|
|
%
|
|
Cost
efficiency ratio
|
|
85.1
|
|
|
77.2
|
|
|
90.1
|
|
|
101.2
|
|
|
71.9
|
|
Reported
pre-tax RoRWA (annualised)
|
|
0.1
|
|
|
0.7
|
|
|
0.2
|
|
|
(0.7
|
)
|
|
0.9
|
|
Profit/(loss)
before tax by global business
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine
months ended
|
|
Quarter
ended
|
|
|
30
Sep 2016
|
|
|
30
Sep 2015
|
|
|
30
Sep 2016
|
|
|
30
Jun 2016
|
|
|
30
Sep 2015
|
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
Banking and Wealth Management
|
|
(644
|
)
|
|
(168
|
)
|
|
(129
|
)
|
|
(428
|
)
|
|
4
|
|
Principal
RBWM
|
|
46
|
|
|
8
|
|
|
(15
|
)
|
|
31
|
|
|
25
|
|
Run-off
portfolio
|
|
(690
|
)
|
|
(176
|
)
|
|
(114
|
)
|
|
(459
|
)
|
|
(21
|
)
|
Commercial
Banking
|
|
515
|
|
|
595
|
|
|
205
|
|
|
151
|
|
|
172
|
|
Global
Banking and Markets
|
|
330
|
|
|
564
|
|
|
171
|
|
|
34
|
|
|
208
|
|
Global
Private Banking
|
|
73
|
|
|
50
|
|
|
20
|
|
|
34
|
|
|
13
|
|
Other
|
|
(158
|
)
|
|
128
|
|
|
(201
|
)
|
|
(105
|
)
|
|
82
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit/(loss)
before tax
|
|
116
|
|
|
1,169
|
|
|
66
|
|
|
(314
|
)
|
|
479
|
|
HSBC
HOLDINGS PLC
29
Earnings Release - 3Q16 (continued)
Latin
America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine
months ended
|
|
Quarter
ended
|
|
|
30
Sep 2016
|
|
|
30
Sep 2015
|
|
|
30
Sep 2016
|
|
|
30
Jun 2016
|
|
|
30
Sep 2015
|
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
Net
operating income before loan impairment charges and other credit
risk provisions
|
|
1,960
|
|
|
5,167
|
|
|
(965
|
)
|
|
1,506
|
|
|
1,609
|
|
Loan
impairment charges and other credit risk provisions
|
|
(1,105
|
)
|
|
(1,010
|
)
|
|
(138
|
)
|
|
(521
|
)
|
|
(289
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net
operating income
|
|
855
|
|
|
4,157
|
|
|
(1,103
|
)
|
|
985
|
|
|
1,320
|
|
Total
operating expenses
|
|
(2,504
|
)
|
|
(3,581
|
)
|
|
(492
|
)
|
|
(1,045
|
)
|
|
(1,176
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit/(loss)
|
|
(1,649
|
)
|
|
576
|
|
|
(1,595
|
)
|
|
(60
|
)
|
|
144
|
|
Share
of loss in associates and joint ventures
|
|
(1
|
)
|
|
(1
|
)
|
|
-
|
|
|
-
|
|
|
(1
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Profit/(loss)
before tax
|
|
(1,650
|
)
|
|
575
|
|
|
(1,595
|
)
|
|
(60
|
)
|
|
143
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
%
|
|
|
%
|
|
|
%
|
|
|
%
|
|
|
%
|
|
Cost
efficiency ratio
|
|
127.8
|
|
|
69.3
|
|
|
(51.0
|
)
|
|
69.4
|
|
|
73.1
|
|
Reported
pre-tax RoRWA (annualised)
|
|
(3.3
|
)
|
|
0.9
|
|
|
(10.9
|
)
|
|
(0.3
|
)
|
|
0.7
|
|
Profit/(loss)
before tax by global business
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine
months ended
|
|
Quarter
ended
|
|
|
30
Sep 2016
|
|
|
30
Sep 2015
|
|
|
30
Sep 2016
|
|
|
30
Jun 2016
|
|
|
30
Sep 2015
|
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
Banking and Wealth Management
|
|
(918
|
)
|
|
(132
|
)
|
|
(720
|
)
|
|
(89
|
)
|
|
(100
|
)
|
Commercial
Banking
|
|
(505
|
)
|
|
198
|
|
|
(495
|
)
|
|
(32
|
)
|
|
62
|
|
Global
Banking and Markets
|
|
(126
|
)
|
|
528
|
|
|
(361
|
)
|
|
105
|
|
|
188
|
|
Global
Private Banking
|
|
2
|
|
|
3
|
|
|
(4
|
)
|
|
3
|
|
|
1
|
|
Other
|
|
(103
|
)
|
|
(22
|
)
|
|
(15
|
)
|
|
(47
|
)
|
|
(8
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Profit/(loss)
before tax
|
|
(1,650
|
)
|
|
575
|
|
|
(1,595
|
)
|
|
(60
|
)
|
|
143
|
|
HSBC
HOLDINGS PLC
30
Earnings Release - 3Q16 (continued)
Appendix
- selected information
Reconciliation
of reported results to adjusted performance - geographical
regions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine
months ended 30 Sep 2016
|
|
|
Europe
|
|
|
Asia
|
|
|
MENA
|
|
|
NorthAmerica
|
|
|
LatinAmerica
|
|
|
Total
|
|
|
UK
|
|
|
HongKong
|
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
1
|
|
13,881
|
|
|
17,751
|
|
|
2,337
|
|
|
5,532
|
|
|
1,960
|
|
|
38,982
|
|
|
10,369
|
|
|
10,700
|
|
Significant
items
|
|
(165
|
)
|
|
(23
|
)
|
|
(13
|
)
|
|
64
|
|
|
308
|
|
|
171
|
|
|
(100
|
)
|
|
(11
|
)
|
- DVA
on derivative contracts
|
|
(106
|
)
|
|
(29
|
)
|
|
-
|
|
|
2
|
|
|
37
|
|
|
(96
|
)
|
|
(108
|
)
|
|
(29
|
)
|
- fair
value movements on non-qualifying hedges
|
|
260
|
|
|
18
|
|
|
-
|
|
|
109
|
|
|
(2
|
)
|
|
385
|
|
|
221
|
|
|
25
|
|
- loss
on sale of several tranches of real estate secured accounts
in the US
|
|
-
|
|
|
-
|
|
|
-
|
|
|
51
|
|
|
-
|
|
|
51
|
|
|
-
|
|
|
-
|
|
- gain
on disposal of our membership interest in Visa Europe
|
|
(573
|
)
|
|
-
|
|
|
(11
|
)
|
|
-
|
|
|
-
|
|
|
(584
|
)
|
|
(441
|
)
|
|
-
|
|
- own
credit spread
|
|
256
|
|
|
(12
|
)
|
|
(2
|
)
|
|
(98
|
)
|
|
-
|
|
|
144
|
|
|
230
|
|
|
(7
|
)
|
- releases
arising from the ongoing review of compliance with the UK Consumer
Credit Act
|
|
(2
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(2
|
)
|
|
(2
|
)
|
|
-
|
|
- loss
and trading results from disposed-of operations in
Brazil
2
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
273
|
|
|
273
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
1
|
|
13,716
|
|
|
17,728
|
|
|
2,324
|
|
|
5,596
|
|
|
2,268
|
|
|
39,153
|
|
|
10,269
|
|
|
10,689
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LICs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
|
|
(386
|
)
|
|
(552
|
)
|
|
(184
|
)
|
|
(705
|
)
|
|
(1,105
|
)
|
|
(2,932
|
)
|
|
(240
|
)
|
|
(231
|
)
|
Significant
items
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
748
|
|
|
748
|
|
|
-
|
|
|
-
|
|
-
trading results from disposed-of operations in Brazil
2
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
748
|
|
|
748
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
|
|
(386
|
)
|
|
(552
|
)
|
|
(184
|
)
|
|
(705
|
)
|
|
(357
|
)
|
|
(2,184
|
)
|
|
(240
|
)
|
|
(231
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
1
|
|
(13,524
|
)
|
|
(7,887
|
)
|
|
(1,206
|
)
|
|
(4,707
|
)
|
|
(2,504
|
)
|
|
(27,349
|
)
|
|
(9,902
|
)
|
|
(4,122
|
)
|
Significant
items
|
|
2,950
|
|
|
215
|
|
|
75
|
|
|
887
|
|
|
1,077
|
|
|
5,204
|
|
|
1,895
|
|
|
85
|
|
- costs
to achieve
|
|
1,377
|
|
|
262
|
|
|
75
|
|
|
300
|
|
|
18
|
|
|
2,032
|
|
|
1,187
|
|
|
132
|
|
- costs
to establish UK ring-fenced bank
|
|
147
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
147
|
|
|
147
|
|
|
-
|
|
-
impairment of GPB - Europe goodwill
|
|
800
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
800
|
|
|
-
|
|
|
-
|
|
-
regulatory provisions in GPB
|
|
1
|
|
|
(47
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(46
|
)
|
|
-
|
|
|
(47
|
)
|
-
settlements and provisions in connection with legal
matters
|
|
136
|
|
|
-
|
|
|
-
|
|
|
587
|
|
|
-
|
|
|
723
|
|
|
72
|
|
|
-
|
|
- UK
customer redress programmes
|
|
489
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
489
|
|
|
489
|
|
|
-
|
|
-
trading results from disposed-of operations in Brazil
2
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1,059
|
|
|
1,059
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
1
|
|
(10,574
|
)
|
|
(7,672
|
)
|
|
(1,131
|
)
|
|
(3,820
|
)
|
|
(1,427
|
)
|
|
(22,145
|
)
|
|
(8,007
|
)
|
|
(4,037
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
of profit/(loss) in associates and joint ventures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
|
|
(3
|
)
|
|
1,503
|
|
|
361
|
|
|
(4
|
)
|
|
(1
|
)
|
|
1,856
|
|
|
(4
|
)
|
|
19
|
|
Significant
items
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1
|
|
|
1
|
|
|
-
|
|
|
-
|
|
-
trading results from disposed-of operations in Brazil
2
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1
|
|
|
1
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
|
|
(3
|
)
|
|
1,503
|
|
|
361
|
|
|
(4
|
)
|
|
-
|
|
|
1,857
|
|
|
(4
|
)
|
|
19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
before tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
|
|
(32
|
)
|
|
10,815
|
|
|
1,308
|
|
|
116
|
|
|
(1,650
|
)
|
|
10,557
|
|
|
223
|
|
|
6,366
|
|
Significant
items
|
|
2,785
|
|
|
192
|
|
|
62
|
|
|
951
|
|
|
2,134
|
|
|
6,124
|
|
|
1,795
|
|
|
74
|
|
-
revenue
|
|
(165
|
)
|
|
(23
|
)
|
|
(13
|
)
|
|
64
|
|
|
308
|
|
|
171
|
|
|
(100
|
)
|
|
(11
|
)
|
-
LICs
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
748
|
|
|
748
|
|
|
-
|
|
|
-
|
|
-
operating expenses
|
|
2,950
|
|
|
215
|
|
|
75
|
|
|
887
|
|
|
1,077
|
|
|
5,204
|
|
|
1,895
|
|
|
85
|
|
- share
in profit of associates
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1
|
|
|
1
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
|
|
2,753
|
|
|
11,007
|
|
|
1,370
|
|
|
1,067
|
|
|
484
|
|
|
16,681
|
|
|
2,018
|
|
|
6,440
|
|
|
|
1
|
Amounts are non-additive across geographical regions due to
inter-company transactions within the Group.
|
|
|
2
|
Includes loss on disposal and trading results of operations in
Brazil, which were sold on 1 July 2016. The amount of the loss on
disposal included in revenue is $1,743m. Trading results do not
include 'DVA on derivative contracts', 'costs to achieve' and
'restructuring and other related costs' significant items. These
significant items are included in the respective line items above,
with a total adjustment of $36m.
|
HSBC
HOLDINGS PLC
31
Earnings Release - 3Q16 (continued)
Reconciliation
of reported results to adjusted performance - geographical regions
(continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine
months ended 30 Sep 2015
|
|
|
Europe
3
|
|
|
Asia
|
|
|
MENA
3
|
|
|
NorthAmerica
|
|
|
LatinAmerica
|
|
|
Total
|
|
|
UK
|
|
|
HongKong
|
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
1
|
|
17,014
|
|
|
19,843
|
|
|
2,405
|
|
|
6,065
|
|
|
5,167
|
|
|
48,028
|
|
|
12,962
|
|
|
12,408
|
|
Currency
translation
1
|
|
(1,007
|
)
|
|
(267
|
)
|
|
(96
|
)
|
|
(59
|
)
|
|
(842
|
)
|
|
(2,233
|
)
|
|
(975
|
)
|
|
(18
|
)
|
Significant
items
|
|
(1,505
|
)
|
|
(1,486
|
)
|
|
(11
|
)
|
|
(119
|
)
|
|
(2,580
|
)
|
|
(5,701
|
)
|
|
(1,429
|
)
|
|
(1,397
|
)
|
- DVA
on derivative contracts
|
|
(167
|
)
|
|
(119
|
)
|
|
(1
|
)
|
|
(37
|
)
|
|
(92
|
)
|
|
(416
|
)
|
|
(135
|
)
|
|
(27
|
)
|
- fair
value movements on non-qualifying hedges
|
|
196
|
|
|
2
|
|
|
-
|
|
|
154
|
|
|
1
|
|
|
353
|
|
|
196
|
|
|
3
|
|
- gain
on the partial sale of shareholding in Industrial Bank
|
|
-
|
|
|
(1,372
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(1,372
|
)
|
|
-
|
|
|
(1,372
|
)
|
- own
credit spread
|
|
(1,532
|
)
|
|
3
|
|
|
(10
|
)
|
|
(236
|
)
|
|
-
|
|
|
(1,775
|
)
|
|
(1,488
|
)
|
|
(1
|
)
|
-
releases arising from the ongoing review of compliance with the UK
Consumer Credit Act
|
|
(2
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(2
|
)
|
|
(2
|
)
|
|
-
|
|
-
trading results from disposed-of operations in Brazil
2
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(2,489
|
)
|
|
(2,489
|
)
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
1
|
|
14,502
|
|
|
18,090
|
|
|
2,298
|
|
|
5,887
|
|
|
1,745
|
|
|
40,094
|
|
|
10,558
|
|
|
10,993
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LICs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
|
|
(213
|
)
|
|
(365
|
)
|
|
(272
|
)
|
|
(217
|
)
|
|
(1,010
|
)
|
|
(2,077
|
)
|
|
(52
|
)
|
|
(119
|
)
|
Currency
translation
|
|
(1
|
)
|
|
7
|
|
|
13
|
|
|
3
|
|
|
133
|
|
|
155
|
|
|
3
|
|
|
1
|
|
Significant
items
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
609
|
|
|
609
|
|
|
-
|
|
|
-
|
|
-
trading results from disposed-of operations in Brazil
2
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
609
|
|
|
609
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
|
|
(214
|
)
|
|
(358
|
)
|
|
(259
|
)
|
|
(214
|
)
|
|
(268
|
)
|
|
(1,313
|
)
|
|
(49
|
)
|
|
(118
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
1
|
|
(13,006
|
)
|
|
(8,126
|
)
|
|
(1,297
|
)
|
|
(4,682
|
)
|
|
(3,581
|
)
|
|
(28,226
|
)
|
|
(10,135
|
)
|
|
(4,261
|
)
|
Currency
translation
1
|
|
736
|
|
|
155
|
|
|
50
|
|
|
31
|
|
|
542
|
|
|
1,476
|
|
|
709
|
|
|
5
|
|
Significant
items
|
|
1,458
|
|
|
15
|
|
|
2
|
|
|
436
|
|
|
1,805
|
|
|
3,716
|
|
|
1,279
|
|
|
10
|
|
- costs
to achieve
|
|
89
|
|
|
7
|
|
|
1
|
|
|
38
|
|
|
30
|
|
|
165
|
|
|
82
|
|
|
4
|
|
- costs
to establish UK ring-fenced bank
|
|
28
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
28
|
|
|
28
|
|
|
-
|
|
-
regulatory provisions in GPB
|
|
154
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
154
|
|
|
-
|
|
|
-
|
|
-
restructuring and other related costs
|
|
68
|
|
|
8
|
|
|
1
|
|
|
34
|
|
|
6
|
|
|
117
|
|
|
50
|
|
|
6
|
|
-
settlements and provisions in connection with legal
matters
|
|
915
|
|
|
-
|
|
|
-
|
|
|
364
|
|
|
-
|
|
|
1,279
|
|
|
915
|
|
|
-
|
|
- UK
customer redress programmes
|
|
204
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
204
|
|
|
204
|
|
|
-
|
|
-
trading results from disposed-of operations in Brazil
2
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1,769
|
|
|
1,769
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
1
|
|
(10,812
|
)
|
|
(7,956
|
)
|
|
(1,245
|
)
|
|
(4,215
|
)
|
|
(1,234
|
)
|
|
(23,034
|
)
|
|
(8,147
|
)
|
|
(4,246
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
of profit/(loss) in associates and joint ventures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
|
|
6
|
|
|
1,596
|
|
|
396
|
|
|
3
|
|
|
(1
|
)
|
|
2,000
|
|
|
6
|
|
|
22
|
|
Currency
translation
|
|
-
|
|
|
(86
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(86
|
)
|
|
-
|
|
|
-
|
|
Significant
items
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1
|
|
|
1
|
|
|
-
|
|
|
-
|
|
-
trading results from disposed-of operations in Brazil
2
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1
|
|
|
1
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
|
|
6
|
|
|
1,510
|
|
|
396
|
|
|
3
|
|
|
-
|
|
|
1,915
|
|
|
6
|
|
|
22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
before tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
|
|
3,801
|
|
|
12,948
|
|
|
1,232
|
|
|
1,169
|
|
|
575
|
|
|
19,725
|
|
|
2,781
|
|
|
8,050
|
|
Currency
translation
|
|
(272
|
)
|
|
(191
|
)
|
|
(33
|
)
|
|
(25
|
)
|
|
(167
|
)
|
|
(688
|
)
|
|
(263
|
)
|
|
(12
|
)
|
Significant
items
|
|
(47
|
)
|
|
(1,471
|
)
|
|
(9
|
)
|
|
317
|
|
|
(165
|
)
|
|
(1,375
|
)
|
|
(150
|
)
|
|
(1,387
|
)
|
-
revenue
|
|
(1,505
|
)
|
|
(1,486
|
)
|
|
(11
|
)
|
|
(119
|
)
|
|
(2,580
|
)
|
|
(5,701
|
)
|
|
(1,429
|
)
|
|
(1,397
|
)
|
-
LICs
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
609
|
|
|
609
|
|
|
-
|
|
|
-
|
|
-
operating expenses
|
|
1,458
|
|
|
15
|
|
|
2
|
|
|
436
|
|
|
1,805
|
|
|
3,716
|
|
|
1,279
|
|
|
10
|
|
- share
in profit of associates
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1
|
|
|
1
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
|
|
3,482
|
|
|
11,286
|
|
|
1,190
|
|
|
1,461
|
|
|
243
|
|
|
17,662
|
|
|
2,368
|
|
|
6,651
|
|
|
|
1
|
Amounts are non-additive across geographical regions due to
inter-company transactions within the Group.
|
|
|
2
|
Includes foreign currency translation of operations in Brazil,
which were sold on 1 July 2016. These are $(321)m in revenue, $78m
in LICs and $208m in operating expenses. Trading results do
not include 'DVA on derivative contracts', 'costs to achieve' and
'restructuring and other related costs' significant items. These
significant items are included in the respective line items above,
with a total adjustment of $(54)m.
|
|
|
3
|
In 3Q16, HSBC Bank plc executed a management services agreement,
transferring its governance responsibilities over HSBC Bank A.S.
(Turkey) to HSBC Bank Middle East Limited to leverage the strong
commercial ties between Turkey and MENA. Comparative data for
Europe and MENA have been re-presented
accordingly.
|
HSBC
HOLDINGS PLC
32
Earnings Release - 3Q16 (continued)
Reconciliation
of reported results to adjusted performance - geographical regions
(continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
ended 30 Sep 2016
|
|
|
Europe
|
|
|
Asia
|
|
|
MENA
|
|
|
NorthAmerica
|
|
|
LatinAmerica
|
|
|
Total
|
|
|
UK
|
|
|
HongKong
|
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
1
|
|
3,023
|
|
|
5,999
|
|
|
725
|
|
|
1,580
|
|
|
(965
|
)
|
|
9,512
|
|
|
1,919
|
|
|
3,639
|
|
Significant
items
|
|
1,346
|
|
|
43
|
|
|
3
|
|
|
138
|
|
|
1,745
|
|
|
3,275
|
|
|
1,291
|
|
|
11
|
|
- DVA on
derivative contracts
|
|
4
|
|
|
34
|
|
|
-
|
|
|
15
|
|
|
2
|
|
|
55
|
|
|
(8
|
)
|
|
(4
|
)
|
- fair
value movements on
non-qualifying
hedges
|
|
(17
|
)
|
|
5
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(12
|
)
|
|
(18
|
)
|
|
9
|
|
- loss
on sale of several tranches of real estate secured accounts
in the US
|
|
-
|
|
|
-
|
|
|
-
|
|
|
119
|
|
|
-
|
|
|
119
|
|
|
-
|
|
|
-
|
|
- own
credit spread
|
|
1,359
|
|
|
4
|
|
|
3
|
|
|
4
|
|
|
-
|
|
|
1,370
|
|
|
1,317
|
|
|
6
|
|
- loss
on disposal of operations in Brazil
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1,743
|
|
|
1,743
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
1
|
|
4,369
|
|
|
6,042
|
|
|
728
|
|
|
1,718
|
|
|
780
|
|
|
12,787
|
|
|
3,210
|
|
|
3,650
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LICs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
|
|
(44
|
)
|
|
(208
|
)
|
|
(88
|
)
|
|
(88
|
)
|
|
(138
|
)
|
|
(566
|
)
|
|
21
|
|
|
(88
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
|
|
(44
|
)
|
|
(208
|
)
|
|
(88
|
)
|
|
(88
|
)
|
|
(138
|
)
|
|
(566
|
)
|
|
21
|
|
|
(88
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
1
|
|
(4,594
|
)
|
|
(2,642
|
)
|
|
(419
|
)
|
|
(1,424
|
)
|
|
(492
|
)
|
|
(8,721
|
)
|
|
(3,692
|
)
|
|
(1,362
|
)
|
Significant
items
|
|
1,134
|
|
|
101
|
|
|
47
|
|
|
179
|
|
|
12
|
|
|
1,473
|
|
|
1,022
|
|
|
23
|
|
- costs
to achieve
|
|
628
|
|
|
148
|
|
|
47
|
|
|
179
|
|
|
12
|
|
|
1,014
|
|
|
513
|
|
|
70
|
|
- costs
to establish UK ring-fenced bank
|
|
53
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
53
|
|
|
53
|
|
|
-
|
|
-
regulatory provisions in GPB
|
|
(3
|
)
|
|
(47
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(50
|
)
|
|
-
|
|
|
(47
|
)
|
- UK
customer redress programmes
|
|
456
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
456
|
|
|
456
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
1
|
|
(3,460
|
)
|
|
(2,541
|
)
|
|
(372
|
)
|
|
(1,245
|
)
|
|
(480
|
)
|
|
(7,248
|
)
|
|
(2,670
|
)
|
|
(1,339
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
of profit/(loss) in associates and joint ventures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
|
|
(2
|
)
|
|
511
|
|
|
111
|
|
|
(2
|
)
|
|
-
|
|
|
618
|
|
|
(2
|
)
|
|
7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
|
|
(2
|
)
|
|
511
|
|
|
111
|
|
|
(2
|
)
|
|
-
|
|
|
618
|
|
|
(2
|
)
|
|
7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit/(loss)
before tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
|
|
(1,617
|
)
|
|
3,660
|
|
|
329
|
|
|
66
|
|
|
(1,595
|
)
|
|
843
|
|
|
(1,754
|
)
|
|
2,196
|
|
Significant
items
|
|
2,480
|
|
|
144
|
|
|
50
|
|
|
317
|
|
|
1,757
|
|
|
4,748
|
|
|
2,313
|
|
|
34
|
|
-
revenue
|
|
1,346
|
|
|
43
|
|
|
3
|
|
|
138
|
|
|
1,745
|
|
|
3,275
|
|
|
1,291
|
|
|
11
|
|
-
operating expenses
|
|
1,134
|
|
|
101
|
|
|
47
|
|
|
179
|
|
|
12
|
|
|
1,473
|
|
|
1,022
|
|
|
23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
|
|
863
|
|
|
3,804
|
|
|
379
|
|
|
383
|
|
|
162
|
|
|
5,591
|
|
|
559
|
|
|
2,230
|
|
|
|
1
|
Amounts
are non-additive across geographical regions due to inter-company
transactions within the Group.
|
HSBC
HOLDINGS PLC
33
Earnings Release - 3Q16 (continued)
Reconciliation
of reported results to adjusted performance - geographical regions
(continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
ended 30 Sep 2015
|
|
|
Europe
3
|
|
|
Asia
|
|
|
MENA
3
|
|
|
NorthAmerica
|
|
|
LatinAmerica
|
|
|
Total
|
|
|
UK
|
|
|
HongKong
|
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
1
|
|
5,874
|
|
|
5,778
|
|
|
779
|
|
|
1,939
|
|
|
1,609
|
|
|
15,085
|
|
|
4,716
|
|
|
3,278
|
|
Currency
translation
1
|
|
(547
|
)
|
|
(15
|
)
|
|
(22
|
)
|
|
1
|
|
|
(83
|
)
|
|
(658
|
)
|
|
(547
|
)
|
|
(3
|
)
|
Significant
items
|
|
(925
|
)
|
|
(67
|
)
|
|
(8
|
)
|
|
38
|
|
|
(937
|
)
|
|
(1,899
|
)
|
|
(890
|
)
|
|
(17
|
)
|
- DVA on
derivative contracts
|
|
(88
|
)
|
|
(69
|
)
|
|
-
|
|
|
(15
|
)
|
|
(79
|
)
|
|
(251
|
)
|
|
(68
|
)
|
|
(13
|
)
|
- fair
value movements on non-qualifying hedges
|
|
173
|
|
|
2
|
|
|
-
|
|
|
133
|
|
|
-
|
|
|
308
|
|
|
152
|
|
|
(2
|
)
|
- loss
on sale of several tranches of real estate secured accounts
in the US
|
|
-
|
|
|
-
|
|
|
-
|
|
|
17
|
|
|
-
|
|
|
17
|
|
|
-
|
|
|
-
|
|
- own
credit spread
|
|
(1,020
|
)
|
|
-
|
|
|
(8
|
)
|
|
(97
|
)
|
|
-
|
|
|
(1,125
|
)
|
|
(984
|
)
|
|
(2
|
)
|
-
provisions arising from the ongoing review of compliance with the
UK Consumer Credit Act
|
|
10
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
10
|
|
|
10
|
|
|
-
|
|
-
trading results from disposed-of operations in Brazil
2
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(858
|
)
|
|
(858
|
)
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
1
|
|
4,402
|
|
|
5,696
|
|
|
749
|
|
|
1,978
|
|
|
589
|
|
|
12,528
|
|
|
3,279
|
|
|
3,258
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LICs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
|
|
(22
|
)
|
|
(119
|
)
|
|
(144
|
)
|
|
(64
|
)
|
|
(289
|
)
|
|
(638
|
)
|
|
20
|
|
|
(62
|
)
|
Currency
translation
|
|
(1
|
)
|
|
-
|
|
|
2
|
|
|
-
|
|
|
(4
|
)
|
|
(3
|
)
|
|
(2
|
)
|
|
-
|
|
Significant
items
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
207
|
|
|
207
|
|
|
-
|
|
|
-
|
|
-
trading results from disposed-of operations in Brazil
2
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
207
|
|
|
207
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
|
|
(23
|
)
|
|
(119
|
)
|
|
(142
|
)
|
|
(64
|
)
|
|
(86
|
)
|
|
(434
|
)
|
|
18
|
|
|
(62
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
1
|
|
(4,275
|
)
|
|
(2,669
|
)
|
|
(418
|
)
|
|
(1,395
|
)
|
|
(1,176
|
)
|
|
(9,039
|
)
|
|
(3,382
|
)
|
|
(1,405
|
)
|
Currency
translation
1
|
|
385
|
|
|
8
|
|
|
9
|
|
|
-
|
|
|
43
|
|
|
437
|
|
|
383
|
|
|
1
|
|
Significant
items
|
|
326
|
|
|
7
|
|
|
1
|
|
|
38
|
|
|
716
|
|
|
1,088
|
|
|
312
|
|
|
4
|
|
- costs
to achieve
|
|
89
|
|
|
7
|
|
|
1
|
|
|
38
|
|
|
30
|
|
|
165
|
|
|
82
|
|
|
4
|
|
- costs
to establish UK ring-fenced bank
|
|
28
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
28
|
|
|
28
|
|
|
-
|
|
-
regulatory provisions in GPB
|
|
7
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
7
|
|
|
-
|
|
|
-
|
|
-
settlements and provisions in connection with legal
matters
|
|
135
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
135
|
|
|
135
|
|
|
-
|
|
- UK
customer redress programmes
|
|
67
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
67
|
|
|
67
|
|
|
-
|
|
-
trading results from disposed-of operations in Brazil
2
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
686
|
|
|
686
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
1
|
|
(3,564
|
)
|
|
(2,654
|
)
|
|
(408
|
)
|
|
(1,357
|
)
|
|
(417
|
)
|
|
(7,514
|
)
|
|
(2,687
|
)
|
|
(1,400
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
of profit/(loss) in associates and joint ventures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
|
|
4
|
|
|
558
|
|
|
129
|
|
|
(1
|
)
|
|
(1
|
)
|
|
689
|
|
|
2
|
|
|
6
|
|
Currency
translation
|
|
-
|
|
|
(30
|
)
|
|
-
|
|
|
-
|
|
|
1
|
|
|
(29
|
)
|
|
2
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
|
|
4
|
|
|
528
|
|
|
129
|
|
|
(1
|
)
|
|
-
|
|
|
660
|
|
|
4
|
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
before tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
|
|
1,581
|
|
|
3,548
|
|
|
346
|
|
|
479
|
|
|
143
|
|
|
6,097
|
|
|
1,356
|
|
|
1,817
|
|
Currency
translation
|
|
(163
|
)
|
|
(37
|
)
|
|
(11
|
)
|
|
1
|
|
|
(43
|
)
|
|
(253
|
)
|
|
(164
|
)
|
|
(2
|
)
|
Significant
items
|
|
(599
|
)
|
|
(60
|
)
|
|
(7
|
)
|
|
76
|
|
|
(14
|
)
|
|
(604
|
)
|
|
(578
|
)
|
|
(13
|
)
|
-
revenue
|
|
(925
|
)
|
|
(67
|
)
|
|
(8
|
)
|
|
38
|
|
|
(937
|
)
|
|
(1,899
|
)
|
|
(890
|
)
|
|
(17
|
)
|
-
LICs
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
207
|
|
|
207
|
|
|
-
|
|
|
-
|
|
-
operating expenses
|
|
326
|
|
|
7
|
|
|
1
|
|
|
38
|
|
|
716
|
|
|
1,088
|
|
|
312
|
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
|
|
819
|
|
|
3,451
|
|
|
328
|
|
|
556
|
|
|
86
|
|
|
5,240
|
|
|
614
|
|
|
1,802
|
|
|
|
1
|
Amounts
are non-additive across geographical regions due to inter-company
transactions within the Group.
|
|
|
2
|
Includes
foreign currency translation of operations in Brazil, which were
sold on 1 July 2016. These are $78m in revenue, $(17)m in LICs and
$(58)m in operating expenses. Trading results do not include
'DVA on derivative contracts', 'costs to achieve' and
'restructuring and other related costs' significant items. These
significant items are included in the respective line items above,
with a total adjustment of $(46)m.
|
|
|
3
|
In
3Q16, HSBC Bank plc executed a management services agreement,
transferring its governance responsibilities over HSBC Bank A.S.
(Turkey) to HSBC Bank Middle East Limited to leverage the strong
commercial ties between Turkey and MENA. Comparative data for
Europe and MENA have been re-presented accordingly.
|
HSBC
HOLDINGS PLC
34
Earnings Release - 3Q16
(continued)
HSBC
HOLDINGS PLC
35
Earnings Release - 3Q16 (continued)
Reconciliation
of reported results to adjusted performance - global
businesses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine
months ended 30 Sep 2016
|
|
|
RBWM
|
|
|
CMB
|
|
|
GB&M
|
|
|
GPB
|
|
|
Other
|
|
|
Total
|
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
1
|
|
15,306
|
|
|
10,320
|
|
|
12,927
|
|
|
1,435
|
|
|
3,524
|
|
|
38,982
|
|
Significant
items
1
|
|
(345
|
)
|
|
23
|
|
|
135
|
|
|
(9
|
)
|
|
350
|
|
|
171
|
|
- DVA
on derivative contracts
|
|
-
|
|
|
-
|
|
|
(96
|
)
|
|
-
|
|
|
-
|
|
|
(96
|
)
|
- fair
value movements on non-qualifying hedges
|
|
176
|
|
|
-
|
|
|
32
|
|
|
-
|
|
|
177
|
|
|
385
|
|
- loss
on sale of several tranches of real estate secured accounts
in the US
|
|
51
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
51
|
|
- gain
on disposal of our membership interest in Visa Europe
|
|
(354
|
)
|
|
(230
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(584
|
)
|
- own
credit spread
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
144
|
|
|
144
|
|
-
provisions/(releases) arising from the ongoing review of compliance
with the UK Consumer Credit Act
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(2
|
)
|
|
-
|
|
|
(2
|
)
|
- loss
and trading results from disposed-of operations in
Brazil
1,2
|
|
(218
|
)
|
|
253
|
|
|
199
|
|
|
(7
|
)
|
|
29
|
|
|
273
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
1
|
|
14,961
|
|
|
10,343
|
|
|
13,062
|
|
|
1,426
|
|
|
3,874
|
|
|
39,153
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LICs
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
|
|
(1,483
|
)
|
|
(1,077
|
)
|
|
(385
|
)
|
|
10
|
|
|
3
|
|
|
(2,932
|
)
|
Significant
items
|
|
461
|
|
|
273
|
|
|
14
|
|
|
-
|
|
|
-
|
|
|
748
|
|
-
trading results from disposed-of operations in Brazil
2
|
|
461
|
|
|
273
|
|
|
14
|
|
|
-
|
|
|
-
|
|
|
748
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
|
|
(1,022
|
)
|
|
(804
|
)
|
|
(371
|
)
|
|
10
|
|
|
3
|
|
|
(2,184
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
1
|
|
(11,463
|
)
|
|
(4,558
|
)
|
|
(6,976
|
)
|
|
(1,858
|
)
|
|
(7,024
|
)
|
|
(27,349
|
)
|
Significant
items
1
|
|
2,144
|
|
|
227
|
|
|
390
|
|
|
766
|
|
|
1,694
|
|
|
5,204
|
|
- costs
to achieve
|
|
313
|
|
|
48
|
|
|
142
|
|
|
6
|
|
|
1,523
|
|
|
2,032
|
|
- costs
to establish UK ring-fenced bank
|
|
1
|
|
|
1
|
|
|
-
|
|
|
-
|
|
|
145
|
|
|
147
|
|
-
impairment of GPB - Europe goodwill
|
|
-
|
|
|
-
|
|
|
-
|
|
|
800
|
|
|
-
|
|
|
800
|
|
-
regulatory provisions in GPB
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(48
|
)
|
|
2
|
|
|
(46
|
)
|
-
settlements and provisions in connection with legal
matters
|
|
587
|
|
|
-
|
|
|
136
|
|
|
-
|
|
|
-
|
|
|
723
|
|
- UK
customer redress programmes
|
|
438
|
|
|
23
|
|
|
28
|
|
|
-
|
|
|
-
|
|
|
489
|
|
-
trading results from disposed-of operations in Brazil
1,2
|
|
805
|
|
|
155
|
|
|
84
|
|
|
8
|
|
|
24
|
|
|
1,059
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
1
|
|
(9,319
|
)
|
|
(4,331
|
)
|
|
(6,586
|
)
|
|
(1,092
|
)
|
|
(5,330
|
)
|
|
(22,145
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
of profit in associates and joint ventures
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
|
|
288
|
|
|
1,154
|
|
|
401
|
|
|
7
|
|
|
6
|
|
|
1,856
|
|
Significant
items
|
|
-
|
|
|
1
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1
|
|
-
trading results from disposed-of operations in Brazil
2
|
|
-
|
|
|
1
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
|
|
288
|
|
|
1,155
|
|
|
401
|
|
|
7
|
|
|
6
|
|
|
1,857
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
before tax
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
|
|
2,648
|
|
|
5,839
|
|
|
5,967
|
|
|
(406
|
)
|
|
(3,491
|
)
|
|
10,557
|
|
Significant
items
|
|
2,260
|
|
|
524
|
|
|
539
|
|
|
757
|
|
|
2,044
|
|
|
6,124
|
|
-
revenue
1
|
|
(345
|
)
|
|
23
|
|
|
135
|
|
|
(9
|
)
|
|
350
|
|
|
171
|
|
-
LICs
|
|
461
|
|
|
273
|
|
|
14
|
|
|
-
|
|
|
-
|
|
|
748
|
|
-
operating expenses
1
|
|
2,144
|
|
|
227
|
|
|
390
|
|
|
766
|
|
|
1,694
|
|
|
5,204
|
|
- share
in profit of associates
|
|
-
|
|
|
1
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
|
|
4,908
|
|
|
6,363
|
|
|
6,506
|
|
|
351
|
|
|
(1,447
|
)
|
|
16,681
|
|
|
|
1
|
Amounts
are non-additive across global businesses due to inter-company
transactions within the Group.
|
|
|
2
|
Includes
loss on disposal and trading results of operations in Brazil, which
were sold on 1 July 2016. The amount of the loss on disposal is
$1,743m. Trading results do not include 'DVA on derivative
contracts', 'costs to achieve' and 'restructuring and other related
costs' significant items. These significant items are included in
the respective line items above, with a total adjustment of nil in
RBWM, nil in CMB, $36m in GB&M, nil in GPB and nil in
Other.
|
HSBC
HOLDINGS PLC
36
Earnings Release - 3Q16 (continued)
Reconciliation
of reported results to adjusted performance - global businesses
(continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine
months ended 30 Sep 2015
|
|
|
RBWM
|
|
|
CMB
|
|
|
GB&M
|
|
|
GPB
|
|
|
Other
|
|
|
Total
|
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
1
|
|
17,912
|
|
|
11,236
|
|
|
14,786
|
|
|
1,685
|
|
|
7,227
|
|
|
48,028
|
|
Currency
translation
1
|
|
(987
|
)
|
|
(577
|
)
|
|
(628
|
)
|
|
(41
|
)
|
|
(100
|
)
|
|
(2,233
|
)
|
Significant
items
1
|
|
(1,400
|
)
|
|
(495
|
)
|
|
(764
|
)
|
|
(45
|
)
|
|
(3,024
|
)
|
|
(5,701
|
)
|
- DVA
on derivative contracts
|
|
-
|
|
|
-
|
|
|
(416
|
)
|
|
-
|
|
|
-
|
|
|
(416
|
)
|
- fair
value movements on non-qualifying hedges
|
|
130
|
|
|
-
|
|
|
18
|
|
|
(1
|
)
|
|
206
|
|
|
353
|
|
- gain
on the partial sale of shareholding in Industrial Bank
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(1,372
|
)
|
|
(1,372
|
)
|
- own
credit spread
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(1,775
|
)
|
|
(1,775
|
)
|
-
provisions/(releases) arising from the ongoing review of compliance
with the UK Consumer Credit Act
|
|
22
|
|
|
-
|
|
|
-
|
|
|
(24
|
)
|
|
-
|
|
|
(2
|
)
|
-
trading results from disposed-of operations in Brazil
1,2
|
|
(1,552
|
)
|
|
(495
|
)
|
|
(366
|
)
|
|
(20
|
)
|
|
(83
|
)
|
|
(2,489
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
1
|
|
15,525
|
|
|
10,164
|
|
|
13,394
|
|
|
1,599
|
|
|
4,103
|
|
|
40,094
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LICs
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
|
|
(1,396
|
)
|
|
(757
|
)
|
|
90
|
|
|
(9
|
)
|
|
(5
|
)
|
|
(2,077
|
)
|
Currency
translation
|
|
114
|
|
|
45
|
|
|
(6
|
)
|
|
1
|
|
|
1
|
|
|
155
|
|
Significant
items
|
|
482
|
|
|
156
|
|
|
(29
|
)
|
|
-
|
|
|
-
|
|
|
609
|
|
-
trading results from disposed-of operations in Brazil
2
|
|
482
|
|
|
156
|
|
|
(29
|
)
|
|
-
|
|
|
-
|
|
|
609
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
|
|
(800
|
)
|
|
(556
|
)
|
|
55
|
|
|
(8
|
)
|
|
(4
|
)
|
|
(1,313
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
1
|
|
(12,308
|
)
|
|
(4,997
|
)
|
|
(8,385
|
)
|
|
(1,427
|
)
|
|
(5,927
|
)
|
|
(28,226
|
)
|
Currency
translation
1
|
|
739
|
|
|
252
|
|
|
412
|
|
|
33
|
|
|
140
|
|
|
1,476
|
|
Significant
items
1
|
|
1,864
|
|
|
360
|
|
|
1,121
|
|
|
190
|
|
|
208
|
|
|
3,716
|
|
- costs
to achieve
|
|
56
|
|
|
13
|
|
|
20
|
|
|
1
|
|
|
75
|
|
|
165
|
|
- costs
to establish UK ring-fenced bank
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
28
|
|
|
28
|
|
-
regulatory provisions in GPB
|
|
-
|
|
|
-
|
|
|
-
|
|
|
154
|
|
|
-
|
|
|
154
|
|
-
restructuring and other related costs
|
|
32
|
|
|
5
|
|
|
22
|
|
|
18
|
|
|
40
|
|
|
117
|
|
-
settlements and provisions in connection with legal
matters
|
|
350
|
|
|
-
|
|
|
929
|
|
|
-
|
|
|
-
|
|
|
1,279
|
|
- UK
customer redress programmes
|
|
163
|
|
|
41
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
204
|
|
-
trading results from disposed-of operations in Brazil
1,2
|
|
1,263
|
|
|
301
|
|
|
150
|
|
|
17
|
|
|
65
|
|
|
1,769
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
1
|
|
(9,705
|
)
|
|
(4,385
|
)
|
|
(6,852
|
)
|
|
(1,204
|
)
|
|
(5,579
|
)
|
|
(23,034
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
of profit in associates and joint ventures
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
|
|
314
|
|
|
1,267
|
|
|
404
|
|
|
12
|
|
|
3
|
|
|
2,000
|
|
Currency
translation
|
|
(12
|
)
|
|
(63
|
)
|
|
(13
|
)
|
|
3
|
|
|
(1
|
)
|
|
(86
|
)
|
Significant
items
|
|
-
|
|
|
1
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1
|
|
-
trading results from disposed-of operations in Brazil
2
|
|
-
|
|
|
1
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
|
|
302
|
|
|
1,205
|
|
|
391
|
|
|
15
|
|
|
2
|
|
|
1,915
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
before tax
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
|
|
4,522
|
|
|
6,749
|
|
|
6,895
|
|
|
261
|
|
|
1,298
|
|
|
19,725
|
|
Currency
translation
|
|
(146
|
)
|
|
(343
|
)
|
|
(235
|
)
|
|
(4
|
)
|
|
40
|
|
|
(688
|
)
|
Significant
items
|
|
946
|
|
|
22
|
|
|
328
|
|
|
145
|
|
|
(2,816
|
)
|
|
(1,375
|
)
|
-
revenue
1
|
|
(1,400
|
)
|
|
(495
|
)
|
|
(764
|
)
|
|
(45
|
)
|
|
(3,024
|
)
|
|
(5,701
|
)
|
-
LICs
|
|
482
|
|
|
156
|
|
|
(29
|
)
|
|
-
|
|
|
-
|
|
|
609
|
|
-
operating expenses
1
|
|
1,864
|
|
|
360
|
|
|
1,121
|
|
|
190
|
|
|
208
|
|
|
3,716
|
|
- share
in profit of associates
|
|
-
|
|
|
1
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
|
|
5,322
|
|
|
6,428
|
|
|
6,988
|
|
|
402
|
|
|
(1,478
|
)
|
|
17,662
|
|
|
|
1
|
Amounts
are non-additive across global businesses due to inter-company
transactions within the Group.
|
|
|
2
|
Includes
foreign currency translation of operations in Brazil, which were
sold on 1 July 2016. Foreign currency translation amounts included
in revenue are $(204)m in RBWM, $(65)m in CMB, $(47)m in GB&M,
$(2)m in GPB and $(8)m in Other. Foreign currency amounts included
in LICs are $52m in RBWM, $24m in CMB, $2m in GB&M, nil in GPB
and nil in Other. Foreign currency amounts included in operating
expenses are $154m in RBWM, $32m in CMB, $19m in GB&M, $2m in
GPB and $5m in Other. Trading results do not include 'DVA on
derivative contracts', 'costs to achieve' and 'restructuring and
other related costs' significant items. These significant items are
included in the respective line items above, with a total
adjustment of $28m in RBWM, $3m in CMB, $(86)m in GB&M, nil in
GPB and $1m in Other.
|
HSBC
HOLDINGS PLC
37
Earnings Release - 3Q16 (continued)
Reconciliation
of reported results to adjusted performance - global businesses
(continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
ended 30 Sep 2016
|
|
|
RBWM
|
|
|
CMB
|
|
|
GB&M
|
|
|
GPB
|
|
|
Other
|
|
|
Total
|
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
1
|
|
4,189
|
|
|
2,811
|
|
|
4,014
|
|
|
462
|
|
|
(504
|
)
|
|
9,512
|
|
Significant
items
|
|
923
|
|
|
541
|
|
|
491
|
|
|
5
|
|
|
1,315
|
|
|
3,275
|
|
- DVA
on derivative contracts
|
|
-
|
|
|
-
|
|
|
55
|
|
|
-
|
|
|
-
|
|
|
55
|
|
- fair
value movements on non-qualifying hedges
|
|
34
|
|
|
-
|
|
|
12
|
|
|
-
|
|
|
(58
|
)
|
|
(12
|
)
|
- loss
on sale of several tranches of real estate secured accounts
in the US
|
|
119
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
119
|
|
- own
credit spread
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1,370
|
|
|
1,370
|
|
- loss
on disposal of operations in Brazil
|
|
770
|
|
|
541
|
|
|
424
|
|
|
5
|
|
|
3
|
|
|
1,743
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
1
|
|
5,112
|
|
|
3,352
|
|
|
4,505
|
|
|
467
|
|
|
811
|
|
|
12,787
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LICs
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
|
|
(363
|
)
|
|
(244
|
)
|
|
40
|
|
|
(1
|
)
|
|
2
|
|
|
(566
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
|
|
(363
|
)
|
|
(244
|
)
|
|
40
|
|
|
(1
|
)
|
|
2
|
|
|
(566
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
1
|
|
(3,655
|
)
|
|
(1,415
|
)
|
|
(2,227
|
)
|
|
(313
|
)
|
|
(2,571
|
)
|
|
(8,721
|
)
|
Significant
items
|
|
610
|
|
|
20
|
|
|
61
|
|
|
(47
|
)
|
|
829
|
|
|
1,473
|
|
- costs
to achieve
|
|
171
|
|
|
11
|
|
|
51
|
|
|
1
|
|
|
780
|
|
|
1,014
|
|
- costs
to establish UK ring-fenced bank
|
|
1
|
|
|
1
|
|
|
-
|
|
|
-
|
|
|
51
|
|
|
53
|
|
-
regulatory provisions in GPB
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(48
|
)
|
|
(2
|
)
|
|
(50
|
)
|
- UK
customer redress programmes
|
|
438
|
|
|
8
|
|
|
10
|
|
|
-
|
|
|
-
|
|
|
456
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
1
|
|
(3,045
|
)
|
|
(1,395
|
)
|
|
(2,166
|
)
|
|
(360
|
)
|
|
(1,742
|
)
|
|
(7,248
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
of profit in associates and joint ventures
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
|
|
95
|
|
|
383
|
|
|
134
|
|
|
3
|
|
|
3
|
|
|
618
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
|
|
95
|
|
|
383
|
|
|
134
|
|
|
3
|
|
|
3
|
|
|
618
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
before tax
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
|
|
266
|
|
|
1,535
|
|
|
1,961
|
|
|
151
|
|
|
(3,070
|
)
|
|
843
|
|
Significant
items
|
|
1,533
|
|
|
561
|
|
|
552
|
|
|
(42
|
)
|
|
2,144
|
|
|
4,748
|
|
-
revenue
|
|
923
|
|
|
541
|
|
|
491
|
|
|
5
|
|
|
1,315
|
|
|
3,275
|
|
-
operating expenses
|
|
610
|
|
|
20
|
|
|
61
|
|
|
(47
|
)
|
|
829
|
|
|
1,473
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
|
|
1,799
|
|
|
2,096
|
|
|
2,513
|
|
|
109
|
|
|
(926
|
)
|
|
5,591
|
|
|
|
1
|
Amounts
are non-additive across global businesses due to inter-company
transactions within the Group.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
ended 30 Jun 2016
|
|
|
RBWM
|
|
|
CMB
|
|
|
GB&M
|
|
|
GPB
|
|
|
Other
|
|
|
Total
|
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
1
|
|
5,957
|
|
|
3,886
|
|
|
4,447
|
|
|
486
|
|
|
1,370
|
|
|
14,494
|
|
Currency
translation
|
|
(107
|
)
|
|
(97
|
)
|
|
(82
|
)
|
|
(4
|
)
|
|
(14
|
)
|
|
(289
|
)
|
Significant
items
1
|
|
(994
|
)
|
|
(388
|
)
|
|
(86
|
)
|
|
(8
|
)
|
|
100
|
|
|
(1,367
|
)
|
- DVA on
derivative contracts
|
|
-
|
|
|
-
|
|
|
7
|
|
|
-
|
|
|
-
|
|
|
7
|
|
- fair
value movements on non-qualifying hedges
|
|
(6
|
)
|
|
-
|
|
|
12
|
|
|
-
|
|
|
158
|
|
|
164
|
|
- gain
on sale of several tranches of real estate secured accounts
in the US
|
|
(68
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(68
|
)
|
- gain
on disposal of our membership interest in Visa Europe
|
|
(354
|
)
|
|
(230
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(584
|
)
|
- own
credit spread
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(75
|
)
|
|
(75
|
)
|
-
releases arising from the ongoing review of compliance
with the UK Consumer Credit Act
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(2
|
)
|
|
-
|
|
|
(2
|
)
|
-
trading results from disposed-of operations in Brazil
1,2
|
|
(566
|
)
|
|
(158
|
)
|
|
(105
|
)
|
|
(6
|
)
|
|
17
|
|
|
(809
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
1
|
|
4,856
|
|
|
3,401
|
|
|
4,279
|
|
|
474
|
|
|
1,456
|
|
|
12,838
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Amounts
are non-additive across global businesses due to inter-company
transactions within the Group.
|
|
|
2
|
Includes
foreign currency translation of operations in Brazil, which were
sold on 1 July 2016. Foreign currency translation amounts included
in revenue are $42m in RBWM, $12m in CMB, $9m in GB&M, nil in
GPB and $(1)m in Other. Trading results do not include the 'DVA on
derivative contracts', significant item. This significant item is
included in the respective line item above, with a total adjustment
of nil in RBWM, nil in CMB,
|
$(9)m in GB&M,
nil in GPB and nil in Other.
HSBC
HOLDINGS PLC
38
Earnings Release - 3Q16 (continued)
Reconciliation
of reported results to adjusted performance - global businesses
(continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
ended 30 Sep 2015
|
|
|
RBWM
|
|
|
CMB
|
|
|
GB&M
|
|
|
GPB
|
|
|
Other
|
|
|
Total
|
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
1
|
|
5,470
|
|
|
3,702
|
|
|
4,525
|
|
|
508
|
|
|
2,540
|
|
|
15,085
|
|
Currency
translation
1
|
|
(261
|
)
|
|
(183
|
)
|
|
(179
|
)
|
|
(10
|
)
|
|
(48
|
)
|
|
(658
|
)
|
Significant
items
1
|
|
(368
|
)
|
|
(178
|
)
|
|
(366
|
)
|
|
(9
|
)
|
|
(986
|
)
|
|
(1,899
|
)
|
- DVA on
derivative contracts
|
|
-
|
|
|
-
|
|
|
(251
|
)
|
|
-
|
|
|
-
|
|
|
(251
|
)
|
- fair
value movements on non-qualifying hedges
|
|
148
|
|
|
-
|
|
|
(4
|
)
|
|
(1
|
)
|
|
165
|
|
|
308
|
|
- loss
on sale of several tranches of real estate secured accounts
in the US
|
|
17
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
17
|
|
- own
credit spread
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(1,125
|
)
|
|
(1,125
|
)
|
-
provisions arising from the ongoing review of compliance
with the UK Consumer Credit Act
|
|
10
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
10
|
|
-
trading results from disposed-of operations in Brazil
1,2
|
|
(543
|
)
|
|
(178
|
)
|
|
(111
|
)
|
|
(8
|
)
|
|
(26
|
)
|
|
(858
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
1
|
|
4,841
|
|
|
3,341
|
|
|
3,980
|
|
|
489
|
|
|
1,506
|
|
|
12,528
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LICs
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
|
|
(462
|
)
|
|
(246
|
)
|
|
79
|
|
|
(4
|
)
|
|
(5
|
)
|
|
(638
|
)
|
Currency
translation
|
|
(4
|
)
|
|
3
|
|
|
(5
|
)
|
|
1
|
|
|
2
|
|
|
(3
|
)
|
Significant
items
|
|
198
|
|
|
37
|
|
|
(28
|
)
|
|
-
|
|
|
-
|
|
|
207
|
|
-
trading results from disposed-of operations in Brazil
2
|
|
198
|
|
|
37
|
|
|
(28
|
)
|
|
-
|
|
|
-
|
|
|
207
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
|
|
(268
|
)
|
|
(206
|
)
|
|
46
|
|
|
(3
|
)
|
|
(3
|
)
|
|
(434
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
1
|
|
(3,954
|
)
|
|
(1,676
|
)
|
|
(2,595
|
)
|
|
(426
|
)
|
|
(2,048
|
)
|
|
(9,039
|
)
|
Currency
translation
1
|
|
182
|
|
|
64
|
|
|
163
|
|
|
7
|
|
|
44
|
|
|
437
|
|
Significant
items
1
|
|
609
|
|
|
133
|
|
|
205
|
|
|
15
|
|
|
134
|
|
|
1,088
|
|
- costs
to achieve
|
|
56
|
|
|
13
|
|
|
20
|
|
|
1
|
|
|
75
|
|
|
165
|
|
- costs
to establish UK ring-fenced bank
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
28
|
|
|
28
|
|
-
regulatory provisions in GPB
|
|
-
|
|
|
-
|
|
|
-
|
|
|
7
|
|
|
-
|
|
|
7
|
|
-
settlements and provisions in connection with legal
matters
|
|
-
|
|
|
-
|
|
|
135
|
|
|
-
|
|
|
-
|
|
|
135
|
|
- UK
customer redress programmes
|
|
73
|
|
|
(6
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
67
|
|
-
trading results from disposed-of operations in Brazil
1,2
|
|
480
|
|
|
126
|
|
|
50
|
|
|
7
|
|
|
31
|
|
|
686
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
1
|
|
(3,163
|
)
|
|
(1,479
|
)
|
|
(2,227
|
)
|
|
(404
|
)
|
|
(1,870
|
)
|
|
(7,514
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
of profit in associates and joint ventures
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
|
|
106
|
|
|
446
|
|
|
132
|
|
|
3
|
|
|
2
|
|
|
689
|
|
Currency
translation
|
|
(6
|
)
|
|
(22
|
)
|
|
(5
|
)
|
|
1
|
|
|
3
|
|
|
(29
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
|
|
100
|
|
|
424
|
|
|
127
|
|
|
4
|
|
|
5
|
|
|
660
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
before tax
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
|
|
1,160
|
|
|
2,226
|
|
|
2,141
|
|
|
81
|
|
|
489
|
|
|
6,097
|
|
Currency
translation
|
|
(89
|
)
|
|
(138
|
)
|
|
(26
|
)
|
|
(1
|
)
|
|
1
|
|
|
(253
|
)
|
Significant
items
|
|
439
|
|
|
(8
|
)
|
|
(189
|
)
|
|
6
|
|
|
(852
|
)
|
|
(604
|
)
|
-
revenue
1
|
|
(368
|
)
|
|
(178
|
)
|
|
(366
|
)
|
|
(9
|
)
|
|
(986
|
)
|
|
(1,899
|
)
|
-
LICs
|
|
198
|
|
|
37
|
|
|
(28
|
)
|
|
-
|
|
|
-
|
|
|
207
|
|
-
operating expenses
1
|
|
609
|
|
|
133
|
|
|
205
|
|
|
15
|
|
|
134
|
|
|
1,088
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
|
|
1,510
|
|
|
2,080
|
|
|
1,926
|
|
|
86
|
|
|
(362
|
)
|
|
5,240
|
|
|
|
1
|
Amounts
are non-additive across global businesses due to inter-company
transactions within the Group.
|
|
|
2
|
Includes
foreign currency translation of operations in Brazil, which were
sold on 1 July 2016. Foreign currency translation amounts included
in revenue are $45m in RBWM, $15m in CMB, $16m in GB&M, $1m in
GPB and $2m in Other. Foreign currency amounts included in LICs are
$(17)m in RBWM, $(3)m in CMB, $2m in GB&M, nil in GPB and nil
in Other. Foreign currency amounts included in operating expenses
are $(40)m in RBWM, $(11)m in CMB, $(4)m in GB&M, $(1)m in
GPB and $(3)m in Other. Trading results do not include 'DVA on
derivative contracts', 'costs to achieve' and 'restructuring and
other related costs' significant items. These significant items are
included in the respective line items above, with a total
adjustment of $26m in RBWM, $3m in CMB, $(75)m in GB&M, nil in
GPB and nil in Other.
|
HSBC
HOLDINGS PLC
39
Earnings Release - 3Q16 (continued)
Gross
loans and advances by industry sector and by geographical
region
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe
1
|
|
|
Asia
|
|
|
MENA
1
|
|
|
North
America
|
|
|
Latin
America
|
|
|
Total
|
|
|
As a
%of total gross loans
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
$m
|
|
|
At 30
Sep 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Personal
|
|
154,245
|
|
|
134,956
|
|
|
8,869
|
|
|
51,759
|
|
|
5,972
|
|
|
355,801
|
|
|
36.1
|
First
lien residential mortgages
|
|
113,163
|
|
|
97,631
|
|
|
2,786
|
|
|
44,364
|
|
|
1,964
|
|
|
259,908
|
|
|
26.4
|
Other
personal
|
|
41,082
|
|
|
37,325
|
|
|
6,083
|
|
|
7,395
|
|
|
4,008
|
|
|
95,893
|
|
|
9.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and
commercial
|
|
175,410
|
|
|
201,900
|
|
|
23,566
|
|
|
61,273
|
|
|
11,153
|
|
|
473,302
|
|
|
48.0
|
-
manufacturing
|
|
32,803
|
|
|
32,858
|
|
|
3,713
|
|
|
16,000
|
|
|
2,634
|
|
|
88,008
|
|
|
8.9
|
-
international trade and services
|
|
61,597
|
|
|
67,116
|
|
|
9,591
|
|
|
10,921
|
|
|
2,665
|
|
|
151,890
|
|
|
15.4
|
-
commercial real estate
|
|
22,886
|
|
|
32,349
|
|
|
729
|
|
|
7,927
|
|
|
1,510
|
|
|
65,401
|
|
|
6.6
|
- other
property-related
|
|
7,848
|
|
|
34,662
|
|
|
1,745
|
|
|
9,453
|
|
|
423
|
|
|
54,131
|
|
|
5.5
|
-
government
|
|
3,016
|
|
|
2,205
|
|
|
1,567
|
|
|
385
|
|
|
575
|
|
|
7,748
|
|
|
0.8
|
- other
commercial
|
|
47,260
|
|
|
32,710
|
|
|
6,221
|
|
|
16,587
|
|
|
3,346
|
|
|
106,124
|
|
|
10.8
|
Financial
|
|
47,966
|
|
|
79,319
|
|
|
12,164
|
|
|
12,775
|
|
|
3,986
|
|
|
156,210
|
|
|
15.9
|
-
non-bank financial institutions
|
|
32,348
|
|
|
16,938
|
|
|
2,648
|
|
|
8,033
|
|
|
664
|
|
|
60,631
|
|
|
6.2
|
-
banks
|
|
15,618
|
|
|
62,381
|
|
|
9,516
|
|
|
4,742
|
|
|
3,322
|
|
|
95,579
|
|
|
9.7
|
Total
wholesale
|
|
223,376
|
|
|
281,219
|
|
|
35,730
|
|
|
74,048
|
|
|
15,139
|
|
|
629,512
|
|
|
63.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
gross loans and advances at 30 Sep 2016
|
|
377,621
|
|
|
416,175
|
|
|
44,599
|
|
|
125,807
|
|
|
21,111
|
|
|
985,313
|
|
|
100.0
|
Percentage
of total gross loans and advances
|
|
38.3
|
%
|
|
42.3
|
%
|
|
4.5
|
%
|
|
12.8
|
%
|
|
2.1
|
%
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 30
Jun 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Personal
|
|
156,716
|
|
|
134,416
|
|
|
9,168
|
|
|
53,433
|
|
|
5,981
|
|
|
359,714
|
|
|
36.4
|
First
lien residential mortgages
|
|
115,222
|
|
|
96,304
|
|
|
2,787
|
|
|
45,687
|
|
|
1,976
|
|
|
261,976
|
|
|
26.5
|
Other
personal
|
|
41,494
|
|
|
38,112
|
|
|
6,381
|
|
|
7,746
|
|
|
4,005
|
|
|
97,738
|
|
|
9.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and
commercial
|
|
175,567
|
|
|
203,162
|
|
|
25,510
|
|
|
63,347
|
|
|
11,373
|
|
|
478,959
|
|
|
48.4
|
-
manufacturing
|
|
34,100
|
|
|
32,902
|
|
|
4,090
|
|
|
16,919
|
|
|
2,659
|
|
|
90,670
|
|
|
9.2
|
-
international trade and services
|
|
58,004
|
|
|
68,347
|
|
|
10,681
|
|
|
11,549
|
|
|
2,637
|
|
|
151,218
|
|
|
15.3
|
-
commercial real estate
|
|
23,133
|
|
|
31,505
|
|
|
741
|
|
|
8,077
|
|
|
1,266
|
|
|
64,722
|
|
|
6.5
|
- other
property-related
|
|
7,471
|
|
|
34,987
|
|
|
1,820
|
|
|
9,448
|
|
|
441
|
|
|
54,167
|
|
|
5.5
|
-
government
|
|
2,953
|
|
|
2,105
|
|
|
1,730
|
|
|
350
|
|
|
623
|
|
|
7,761
|
|
|
0.8
|
- other
commercial
|
|
49,906
|
|
|
33,316
|
|
|
6,448
|
|
|
17,004
|
|
|
3,747
|
|
|
110,421
|
|
|
11.1
|
Financial
|
|
45,235
|
|
|
75,969
|
|
|
11,424
|
|
|
13,658
|
|
|
3,749
|
|
|
150,035
|
|
|
15.2
|
-
non-bank financial institutions
|
|
30,234
|
|
|
16,466
|
|
|
2,760
|
|
|
7,615
|
|
|
761
|
|
|
57,836
|
|
|
5.9
|
-
banks
|
|
15,001
|
|
|
59,503
|
|
|
8,664
|
|
|
6,043
|
|
|
2,988
|
|
|
92,199
|
|
|
9.3
|
Total
wholesale
|
|
220,802
|
|
|
279,131
|
|
|
36,934
|
|
|
77,005
|
|
|
15,122
|
|
|
628,994
|
|
|
63.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
gross loans and advances at 30 Jun 2016
|
|
377,518
|
|
|
413,547
|
|
|
46,102
|
|
|
130,438
|
|
|
21,103
|
|
|
988,708
|
|
|
100.0
|
Percentage
of total gross loans and advances
|
|
38.2
|
%
|
|
41.8
|
%
|
|
4.7
|
%
|
|
13.2
|
%
|
|
2.1
|
%
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 31
Dec 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Personal
|
|
167,666
|
|
|
132,707
|
|
|
9,565
|
|
|
58,186
|
|
|
5,958
|
|
|
374,082
|
|
|
36.5
|
First
lien residential mortgages
|
|
125,098
|
|
|
94,606
|
|
|
2,704
|
|
|
50,117
|
|
|
1,986
|
|
|
274,511
|
|
|
26.8
|
Other
personal
|
|
42,568
|
|
|
38,101
|
|
|
6,861
|
|
|
8,069
|
|
|
3,972
|
|
|
99,571
|
|
|
9.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and
commercial
|
|
187,508
|
|
|
211,224
|
|
|
26,525
|
|
|
62,882
|
|
|
11,374
|
|
|
499,513
|
|
|
48.8
|
-
manufacturing
|
|
36,623
|
|
|
34,272
|
|
|
4,884
|
|
|
17,507
|
|
|
2,572
|
|
|
95,858
|
|
|
9.4
|
-
international trade and services
|
|
61,598
|
|
|
72,199
|
|
|
10,621
|
|
|
11,505
|
|
|
3,096
|
|
|
159,019
|
|
|
15.5
|
-
commercial real estate
|
|
26,148
|
|
|
32,371
|
|
|
798
|
|
|
7,032
|
|
|
1,577
|
|
|
67,926
|
|
|
6.7
|
- other
property-related
|
|
7,129
|
|
|
35,206
|
|
|
2,102
|
|
|
8,982
|
|
|
45
|
|
|
53,464
|
|
|
5.2
|
-
government
|
|
3,653
|
|
|
1,132
|
|
|
1,695
|
|
|
203
|
|
|
772
|
|
|
7,455
|
|
|
0.7
|
- other
commercial
|
|
52,357
|
|
|
36,044
|
|
|
6,425
|
|
|
17,653
|
|
|
3,312
|
|
|
115,791
|
|
|
11.3
|
Financial
|
|
50,446
|
|
|
68,321
|
|
|
11,762
|
|
|
16,308
|
|
|
3,996
|
|
|
150,833
|
|
|
14.7
|
-
non-bank financial institutions
|
|
33,345
|
|
|
13,969
|
|
|
2,597
|
|
|
9,822
|
|
|
681
|
|
|
60,414
|
|
|
5.9
|
-
banks
|
|
17,101
|
|
|
54,352
|
|
|
9,165
|
|
|
6,486
|
|
|
3,315
|
|
|
90,419
|
|
|
8.8
|
Total
wholesale
|
|
237,954
|
|
|
279,545
|
|
|
38,287
|
|
|
79,190
|
|
|
15,370
|
|
|
650,346
|
|
|
63.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
gross loans and advances at 31 Dec 2015
|
|
405,620
|
|
|
412,252
|
|
|
47,852
|
|
|
137,376
|
|
|
21,328
|
|
|
1,024,428
|
|
|
100.0
|
Percentage
of total gross loans and advances
|
|
39.6
|
%
|
|
40.3
|
%
|
|
4.6
|
%
|
|
13.4
|
%
|
|
2.1
|
%
|
|
100.0
|
%
|
|
|
|
|
1
|
In
3Q16, HSBC Bank plc executed a management services agreement,
transferring its governance responsibilities over HSBC Bank A.S.
(Turkey) to HSBC Bank Middle East Limited to leverage the strong
commercial ties between Turkey and MENA. Comparative data for
Europe and MENA have been re-presented accordingly.
|
HSBC
HOLDINGS PLC
40
Click
on, or paste the following link into your web browser, to view the
associated PDF document.
http://www.rns-pdf.londonstockexchange.com/rns/4372O_-2016-11-6.pdf
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
HSBC
Holdings plc
|
|
|
|
By:
|
|
Name:
Ben J S Mathews
|
|
Title:
Group Company Secretary
|
|
|
|
Date:
7
November
2016
|
Hsbc Holdings, Plc. Perpetual Sub Cap Secs (delisted) (NYSE:HSEA)
Historical Stock Chart
From Jun 2024 to Jul 2024
Hsbc Holdings, Plc. Perpetual Sub Cap Secs (delisted) (NYSE:HSEA)
Historical Stock Chart
From Jul 2023 to Jul 2024